RBI forex swap facility draws $40.816 billion by July 31, FCNR(B) leads
Synopsis
The RBI's concessional forex swap facility has already pulled in $40.816 billion in under two months — surpassing the entire 2013 FCNR(B) drive of $26 billion in just 45 days. With the scheme open until September and a large renewal pipeline building, projections of $80–85 billion in total inflows suggest this could be India's largest-ever foreign currency mobilisation exercise.
Key Takeaways
The RBI 's concessional forex swap facility has attracted $40.816 billion in inflows as of 31 July 2026 .
FCNR(B) deposits account for $36.725 billion of the total; OFCBs contributed $2.575 billion and ECBs $1.516 billion .
SBI Research notes inflows have already crossed the 2013 FCNR(B) record of $26 billion in just 45 days .
Total inflows are projected to reach $65–70 billion in FCNR(B) alone and $80–85 billion overall by scheme close.
Public Sector Banks are leading mobilisation; maturing FCNR deposits in August–September 2026 are expected to be renewed, boosting inflows further.
The facility remains open for FCNR(B) until 30 September 2026 and for OFCBs/ECBs until 31 December 2026 .
The Reserve Bank of India (RBI) on Saturday, 1 August 2026, disclosed that its concessional foreign exchange swap facility has mobilised $40.816 billion in overseas currency inflows since its operationalisation on 8 June 2026. Foreign Currency Non-Resident (Bank) — or FCNR(B) — deposits account for the overwhelming bulk of that figure, according to data received from authorised dealer banks.
Breakdown of Inflows
Of the total $40.816 billion recorded as of 31 July 2026, FCNR(B) deposits contributed $36.725 billion — roughly 90% of the total. Overseas Foreign Currency Borrowings (OFCBs) accounted for $2.575 billion, while External Commercial Borrowings (ECBs) brought in a further $1.516 billion.
The facility has drawn 'avid interest' and 'steady forex inflows' since launch, the central bank said in a statement. The scheme remains open for FCNR(B) deposits until 30 September 2026, and for OFCBs and ECBs until 31 December 2026.
Projections and Benchmarks
According to a latest report, India may receive FCNR(B) deposits in the range of $65–70 billion by the scheme's close on 30 September, with overall inflows potentially reaching $80–85 billion. An SBI Research report noted that FCNR(B) inflows 'have already crossed the 2013 level of $26 billion in just 45 days' — a milestone that underscores the pace of mobilisation.
Earlier RBI data had indicated that FCNR(B) deposits worth $17.4 billion were mobilised by 17 July 2026, with the trend accelerating sharply through the remainder of the month.
Role of Public Sector Banks
Public Sector Banks (PSBs), led by larger institutions, are reportedly anchoring the mobilisation drive. According to the SBI Research report, a significant majority of existing FCNR deposits maturing in August and September 2026 are expected to be renewed under the new scheme, drawn by higher interest rates on offer. This renewal pipeline is projected to further boost inflows in the coming weeks.
PSBs are said to be leveraging both their deposit base and the trust built with high-value clients across geographies, while adopting a blended onshore-offshore strategy to maximise incremental flows.
Background and Context
The RBI announced the concessional swap facility on 5 June 2026, with the aim of attracting stable, long-term foreign currency inflows to shore up India's external account. The 2013 FCNR(B) drive — which raised $26 billion amid a sharp rupee depreciation — is the closest historical precedent. The current scheme has already surpassed that figure in roughly six weeks, signalling markedly stronger appetite this time around.
With the scheme still open for another two months for FCNR(B) deposits, and renewal flows expected to accelerate, the final tally could significantly exceed current projections.
Point of View
A credible RBI backstop, and a diaspora community more willing to park funds in India than at any recent point. But the headline number warrants scrutiny: a large share of inflows may represent renewal of maturing deposits rather than genuinely fresh foreign capital, which would flatter the gross figure without adding equivalent net forex reserves. The real test of the scheme's success will be how much of the projected $80–85 billion represents incremental, sticky inflows versus recycled balances. That distinction matters for rupee stability well beyond September.
NationPress
1 Aug 2026
Frequently Asked Questions
What is the RBI's concessional foreign exchange swap facility?
It is a scheme announced by the Reserve Bank of India on 5 June 2026 and operationalised on 8 June 2026 , offering concessional swap rates to attract fresh inflows through FCNR(B) deposits, OFCBs, and ECBs. The facility is open until 30 September 2026 for FCNR(B) deposits and until 31 December 2026 for OFCBs and ECBs.
How much has the RBI forex swap facility raised so far?
The facility had attracted total inflows of $40.816 billion as of 31 July 2026 , with FCNR(B) deposits alone contributing $36.725 billion . This already surpasses the entire 2013 FCNR(B) mobilisation of $26 billion, according to SBI Research.
How much could total inflows reach by the end of the scheme?
According to projections cited in reports, FCNR(B) deposits could reach $65–70 billion by 30 September 2026 , with overall inflows — including OFCBs and ECBs — potentially totalling $80–85 billion by year-end.
Which banks are driving FCNR(B) deposit mobilisation?
Public Sector Banks , particularly larger institutions, are reportedly leading the mobilisation drive. They are leveraging their existing client relationships and adopting blended onshore-offshore strategies to maximise inflows.
How does the current scheme compare to the 2013 FCNR(B) drive?
The 2013 FCNR(B) scheme raised $26 billion in total and is the closest historical precedent. The current scheme surpassed that figure in approximately 45 days , according to SBI Research , suggesting significantly stronger demand this time.
