RBI Forex Swap Facility Attracts USD 72.8 Billion Inflows
India's central bank drew USD 72.8 billion in foreign currency inflows through its special USD-INR swap facility by August 21, 2026. This scheme supports various deposit and borrowing mechanisms.
Significant Inflows Reported
The Reserve Bank of India (RBI) reported USD 72,848 million in foreign currency inflows through its special USD-INR Forex Swap facility by August 21, 2026. The central bank introduced this mechanism on June 08, 2026.
It aims to draw foreign exchange via Foreign Currency Non-Resident (Bank) deposits, External Commercial Borrowings (ECBs), and Overseas Foreign Currency Borrowings (OFCBs). Authorised Dealer Banks submitted these figures to the RBI.
Breakdown of Capital Sources
Foreign Currency Non-Resident (Bank) deposits, or FCNR(B) deposits, contributed the largest share, bringing in USD 65,397 million. Overseas Foreign Currency Borrowings (OFCBs) added USD 4,860 million to the total. External Commercial Borrowings (ECBs), which are loans raised by Indian entities from foreign sources, accounted for USD 2,591 million. These specific inflows demonstrate the facility's varied appeal across different capital sources.
Staggered Scheme Deadlines
The RBI's swap facility offers differing expiry dates for its components. FCNR(B) deposits can use the scheme until August 31, 2026. The window for ECBs and OFCBs extends longer, remaining open until December 31, 2026. The central bank initially announced these deadlines on August 14, 2026. This staggered approach provides longer-term access for corporate and institutional borrowing.
These substantial inflows bolster India's foreign exchange reserves, providing a buffer against global currency volatility. The facility helps stabilise the Indian rupee and manage liquidity within the financial system.
For businesses, the extended deadline for ECBs and OFCBs means continued access to foreign capital, potentially lowering borrowing costs compared to domestic options. This supports investment and operational stability for Indian firms accessing international markets.
This article is journalism, not investment advice; consult a licensed professional before making financial decisions. Market data is indicative, may be delayed, and should be verified with your broker or exchange before use.
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