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RBI Forex Swap Facility Draws 728 Billion Inflows as FCNRB Deposits Surge
The Reserve Bank of India’s special USD INR forex swap facility has mobilised $72.8 billion in foreign exchange inflows as of August 21, with FCNR(B) deposits contributing $65.4 billion. The strong response has prompted the RBI to advance the closure of the FCNR(B) window to August 31, while total inflows under the broader swap facilities could reach $90 billion to $100 billion, according to Nomura.
By Finblage Editorial Desk
6:20 pm
25 August 2026
The Reserve Bank of India’s special USD INR forex swap facility has mobilised $72.8 billion in foreign exchange inflows as of August 21, with FCNR(B) deposits accounting for $65.4 billion, the government said in a statement on Tuesday.
The facility, launched on June 8, covers Foreign Currency Non Resident Bank (FCNR(B)) deposits, Overseas Foreign Currency Borrowings (OFCB) and External Commercial Borrowings (ECB). The government said the response has exceeded the scale and pace of the RBI’s 2013 FCNR(B) swap scheme, which mobilised around $26 billion over a period of roughly three months.
The strong response has prompted the RBI to advance the closure of the FCNR(B) window to August 31 from the earlier deadline of September 30.
Data cited by Nomura showed that FCNR(B) deposits increased to $65.4 billion as of August 21 from $52.3 billion on August 13, indicating that banks mobilised $13.1 billion in a single week. This compares with $15.6 billion raised over the previous fortnight between July 31 and August 13.
According to Nomura, the sharp acceleration reflects banks’ efforts to mobilise deposits ahead of the August 31 deadline, particularly after the RBI unexpectedly announced the early closure of the FCNR(B) window on August 14.
With the FCNR(B) facility set to close within a week, Nomura expects total inflows through the window to approach $80 billion. Including the ECB and OFCB facilities, which remain open until December 31, overall foreign exchange mobilisation under the swap facilities could reach $90 billion to $100 billion.
Nomura said inflows have continued to exceed expectations, with the current pace suggesting that overall mobilisation is unlikely to fall short of earlier optimistic estimates despite the earlier-than-expected closure of the FCNR(B) window.
The government said the strong response demonstrates confidence among the Indian diaspora in the Indian banking system and the Indian economy. The large-scale mobilisation of non-resident deposits and institutional funding has also strengthened India’s external buffers, according to the government.
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