New Delhi, Aug 14 (IANS) After witnessing an encouraging response and the resultant forex inflows, the Reserve Bank of India (RBI) on Friday announced to prematurely end its swap facility for Foreign Currency Non-Resident (Bank), or FCNR(B), deposits.
The swap facility will now be available only for FCNR(B) deposits mobilised till August 31, 2026, the RBI said.
“Based on the encouraging response to the Swap Facility for FCNR(B) deposits and the resultant forex inflows, it has been decided that the Swap facility for FCNR(B) deposits will be available only for deposits mobilized till August 31, 2026. The Swaps under this facility i.e. FCNR(B) deposits may be availed with RBI till September 11, 2026,” the Central Bank said in a statement.
Earlier this month, the RBI said its concessional foreign exchange swap facility had attracted $40.816 billion in overseas currency inflows since June when it was launched.
Foreign Currency Non-Resident (Bank) deposits accounted for the bulk of the mobilisation, according to data received from authorised dealer banks.
Total inflows under the facility stood at $40.816 billion as of July 31. FCNR (B) deposits contributed $36.725 billion to the total, while Overseas Foreign Currency Borrowings (OFCBs) accounted for $2.575 billion. External Commercial Borrowings (ECBs) brought in a further $1.516 billion.
The swap facility has seen avid interest and attracted steady forex inflows since June 8, 2026, the RBI said in a statement.
According to latest reports, India may receive FCNR (B) deposits in the range of $65-70 billion by the end of the RBI scheme on September 30, and, overall, $80-$85 billion.
Meanwhile, India’s foreign exchange reserves rose sharply by $14.136 billion during the week ended August 7, crossing the $707 billion mark, driven by a significant increase in foreign currency assets and gold reserves.
The rise was led by an increase in foreign currency assets (FCAs), which constituted the largest share of the country’s forex reserves. FCAs climbed by $9.946 billion to $574.625 billion during the week.
–IANS
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