The Reserve Bank of India's special US dollar-rupee swap facility mobilised total foreign exchange inflows of $136.377 billion as of 31 August 2026, with deposits raised from non-resident Indians accounting for the bulk of the amount, the central bank said.

Fresh Foreign Currency Non-Resident Bank, or FCNR(B), deposits contributed $127.226 billion — close to 90% of the total. Overseas Foreign Currency Borrowings (OFCB) by authorised banks added $5.26 billion, while External Commercial Borrowings (ECB) brought in a further $3.891 billion.

The RBI announced the facility on 5 June 2026 and made it operational on 8 June, as part of a broader package of measures intended to strengthen India's balance of payments, boost capital inflows and support the rupee and the country's foreign exchange reserves.

The FCNR(B) window, originally scheduled to stay open until 30 September, was closed a month early on 31 August following a strong response from the Indian diaspora, with the central bank noting that the objective of the facility had been achieved ahead of schedule. The windows for eligible ECBs and OFCBs remain open until 31 December.

Under the scheme, the RBI absorbs part of the currency-hedging cost by offering banks an at-par dollar-rupee swap on the principal raised through eligible three-to-five-year FCNR(B) deposits, lowering the cost of mobilising foreign currency funds. The measure was introduced at a time when higher crude-oil prices and foreign equity outflows were weighing on the rupee.

Source: The Hindu