RBI swap facility draws $20.7 billion forex inflows in 5 weeks
Synopsis
India's central bank swap scheme, launched just five weeks ago, has already pulled in over $20.7 billion in foreign currency — with NRIs in Singapore, the Gulf, the US, and the UK leading the charge. With the FCNR(B) window open until September and ECB momentum expected to build through December, the numbers could climb significantly higher.
Key Takeaways
The RBI 's concessional swap facility has attracted $20,718 million in forex inflows as of 17 July 2026 , five weeks after launch.
FCNR(B) deposits led with $17,406 million ; ECBs contributed $1,342 million and OFCBs added $1,970 million .
The scheme was announced on 5 June 2026 and operationalised on 8 June 2026 .
The FCNR(B) window closes 30 September 2026 ; the OFCB and ECB windows remain open until 31 December 2026 .
Finance Minister Nirmala Sitharaman has urged banks to intensify NRI outreach and introduce innovative deposit products.
Strong NRI interest has been reported from Singapore , Hong Kong , West Asia , the UK , and the US .
The Reserve Bank of India (RBI)'s concessional swap facility for fresh foreign currency deposits and overseas borrowings has pulled in $20,718 million (approximately $20.7 billion) in forex inflows as of 17 July 2026, just five weeks after the scheme was operationalised, according to a central bank statement released on Monday, 20 July 2026. The figure underscores strong demand from non-resident Indians (NRIs) and overseas lenders for India's balance-of-payments support measures.
How the Inflows Break Down
Data received from Authorised Dealer Banks shows that FCNR(B) deposits — foreign currency non-resident bank deposits — accounted for the bulk of the mobilisation at $17,406 million. External Commercial Borrowings (ECBs) contributed $1,342 million, while Overseas Foreign Currency Borrowings (OFCBs) added another $1,970 million to the tally.
The RBI noted in its statement that 'the swap facility has seen avid interest and attracted steady forex inflows since June 8.' The scheme was announced on 5 June 2026 and operationalised three days later on 8 June 2026.
Scheme Structure and Timeline
The facility offers concessional swap rates to incentivise three categories of inflows: fresh FCNR(B) deposits, OFCBs, and ECBs. The window for FCNR(B) deposits closes on 30 September 2026, while the OFCB and ECB windows remain open until 31 December 2026. The suspension of the interest rate ceiling on fresh FCNR(B) deposits under the scheme has allowed banks to offer more competitive returns, particularly on five-year tenors.
NRI Interest and Bank Outreach
Chiefs of public sector banks and financial institutions briefed Finance Minister Nirmala Sitharaman last week, reporting strong NRI interest from diaspora communities in Singapore, Hong Kong, the West Asia region, the United Kingdom, the United States, and other jurisdictions. Managing directors and CEOs indicated that banks have intensified outreach campaigns targeting the Indian diaspora and are rolling out innovative deposit products to sustain momentum.
Sitharaman urged banks to further deepen their outreach, introduce differentiated products, and maintain mobilisation pace through the remainder of the scheme period.
What Comes Next
Bank executives expressed confidence that ECB mobilisations will gather stronger traction in the third quarter of the current financial year — October to December 2026 — as corporate borrowers begin to tap the facility more actively. This comes amid broader RBI efforts to strengthen India's balance of payments and cushion the rupee against external volatility. The pace of NRI deposit inflows is expected to accelerate further as bank outreach campaigns reach deeper into diaspora networks over the coming weeks.
Point of View
But the composition tells a more nuanced story — FCNR(B) deposits account for over 84% of the total, while ECBs, which signal corporate confidence in India's borrowing environment, remain a small slice. The real test will be whether ECB momentum materialises in Q3 as bank executives predict, or whether the inflows remain predominantly retail NRI savings responding to higher deposit rates. India has used FCNR(B) deposit drives before — most notably in 2013 — to defend the rupee, and while they work in the short term, the structural current account dynamics that create forex pressure remain unaddressed. Sitharaman's push for 'innovative deposit products' is worth watching: if banks can lock in longer-tenor NRI capital, the balance-of-payments buffer becomes more durable.
NationPress
21 Jul 2026
Frequently Asked Questions
What is the RBI's concessional swap facility?
It is a scheme announced by the Reserve Bank of India on 5 June 2026 to incentivise foreign currency inflows by offering concessional swap rates on fresh FCNR(B) deposits, External Commercial Borrowings (ECBs), and Overseas Foreign Currency Borrowings (OFCBs). The facility was operationalised on 8 June 2026 and is designed to strengthen India's balance of payments.
How much money has the RBI swap facility attracted so far?
As of 17 July 2026, the facility had attracted $20,718 million in total forex inflows — roughly $20.7 billion — in just five weeks. FCNR(B) deposits accounted for $17,406 million, ECBs for $1,342 million, and OFCBs for $1,970 million, according to RBI data.
When does the RBI swap facility close?
The FCNR(B) deposit window closes on 30 September 2026. The windows for OFCBs and ECBs remain open until 31 December 2026, giving corporate borrowers more time to tap the facility.
Which countries are NRIs investing from under this scheme?
According to bank executives who briefed Finance Minister Nirmala Sitharaman, significant interest has come from NRIs in Singapore, Hong Kong, West Asia, the United Kingdom, and the United States, among other jurisdictions.
Why did the RBI launch this swap facility?
The RBI introduced the scheme as part of a broader set of measures to strengthen India's balance of payments and incentivise capital inflows amid external currency pressures. By offering concessional swap rates and suspending the interest rate ceiling on fresh FCNR(B) deposits, the central bank aimed to make India-linked foreign currency instruments more attractive to NRIs and overseas lenders.
