RBI Forex Swap Facility Attracts USD 40.82 Bn Inflows Till July-End

New Delhi, Aug 1 (KNN) The Reserve Bank of India (RBI) on Saturday said its concessional swap facility has attracted foreign exchange inflows of USD 40.82 billion as of July 31, 2026. 

The facility, introduced to encourage capital inflows and support the balance of payments, has seen strong and steady participation since its launch in June.

Of the total inflows, Foreign Currency Non-Resident (Bank) [FCNR(B)] deposits accounted for the bulk at USD 36.73 billion. Overseas Foreign Currency Borrowings (OFCBs) contributed USD 2.57 billion, while External Commercial Borrowings (ECBs) amounted to USD 1.52 billion.

Strong response to June measures

The RBI had announced the concessional swap window on June 5, 2026, and operationalised it on June 8. The facility is aimed at incentivising fresh FCNR(B) deposits, OFCBs and ECB inflows by offering concessional swap terms.

The window will remain open until September 30, 2026, for FCNR(B) deposits and until December 31, 2026, for OFCBs and ECBs.

Surpasses earlier mobilisation levels

The current inflows have already exceeded the approximately USD 34 billion mobilised under a similar FCNR(B) deposit scheme in 2013. Notably, this level has been reached in less than two months of the facility being operational.

The latest figures also mark a significant rise from July 17, when total inflows stood at USD 20.72 billion, indicating a sharp acceleration in participation.

Positive market response

The strong uptake of the scheme has exceeded market expectations, with analysts revising their projections upward for total inflows by the time the swap window closes.

The RBI said the data is based on inputs received from authorised dealer banks, reflecting continued investor interest and confidence in the facility.

(KNN Bureau)