RBI reports that foreign exchange inflows through the swap facility exceed $40 billion by the end of July.

On August 1, the Reserve Bank of India (RBI) announced that its concessional swap facility has facilitated $40.82 billion in foreign currency inflows up to July 31, 2026, primarily driven by robust inflows from Foreign Currency Non-Resident (Bank) [FCNR(B)] deposits.

Data from authorized dealer banks revealed that FCNR(B) deposits represented $36.73 billion of the total inflows, while Overseas Foreign Currency Borrowings (OFCBs) contributed $2.58 billion, and External Commercial Borrowings (ECBs) added $1.52 billion.

The RBI introduced the special swap facility on June 5, 2026, and made it operational from June 8 to promote foreign currency inflows and enhance external sector liquidity.

Through this facility, banks can attract new FCNR(B) deposits and secure overseas borrowings while utilizing concessional swaps with the RBI. The central bank also indicated that it would cover the cost of hedging related to the facility.

The swap window for FCNR(B) deposits will be accessible until September 30, 2026, whereas the options for OFCBs and ECBs will remain open until December 31, 2026.

The RBI initiated this measure as part of a more extensive strategy unveiled after its June monetary policy review to bolster sustainable foreign exchange inflows and maintain sufficient liquidity in the foreign exchange market.