The Reserve Bank of India’s swap facility, aimed at offering concessional swaps for fresh foreign currency non-resident bank deposits (FCNR(B)), External Commercial Borrowings (ECBs), and Overseas Foreign Currency Borrowings (OFCBs), has successfully drawn forex inflows totaling $20,718 million as of July 17, 2026. Since its launch on June 8 this year, the scheme has garnered significant interest, with $17,406 million coming from FCNR(B) deposits, $1.970 million from OFCBs, and $1,342 million from ECBs. The RBI noted that the swap facility has been consistently attracting forex inflows since its inception.
The RBI introduced a range of measures to bolster the country’s balance of payments and encourage capital inflows, including the facility for concessional swaps for fresh FCNR(B) deposits, OFCBs, and ECBs on June 5, 2026. This initiative became operational on June 8, 2026, with availability until September 30, 2026, for FCNR(B) deposits and until December 31, 2026, for OFCBs and ECBs. Public sector bank and financial institution leaders recently informed Finance Minister Nirmala Sitharaman about the positive response from NRIs to the enhanced interest rates and incentives associated with the FCNR(B) deposits, ECBs, and OFCBs swap programs.
Banks anticipate a further increase in funds from NRIs, as they have intensified efforts to engage with the Indian diaspora. Sitharaman urged banks to enhance their outreach to NRIs, introduce innovative deposit products, and sustain the momentum of mobilization throughout the scheme’s remaining duration. Bank executives highlighted the attractive returns offered on FCNR(B) deposits, especially on five-year deposits, due to the suspension of the interest rate ceiling on fresh FCNR(B) deposits. They also mentioned the strong interest from NRIs in various regions such as Singapore, Hong Kong, the West Asia, the United Kingdom, and the United States.
Bank officials outlined plans to leverage the positive sentiment and accelerate deposit mobilization in the coming months, expressing confidence in the increased traction expected for ECB mobilizations during the third quarter of the current financial year (October-December 2026).
