Banks have mobilised more than $20.7 billion in foreign exchange inflows under the Reserve Bank of India's (RBI) special forex swap scheme, highlighting strong participation since the facility was introduced in June. The scheme, aimed at boosting foreign currency inflows and strengthening India's external position, has attracted deposits across multiple funding channels.
According to the latest RBI data, Foreign Currency Non-Resident (Bank) [FCNR(B)] deposits accounted for the bulk of the inflows, followed by overseas borrowings and external commercial borrowings.
The RBI's data showed that banks mobilised over $17.4 billion through FCNR(B) deposits, making it the largest contributor under the scheme.
In addition, banks raised nearly $2 billion through Overseas Foreign Currency Borrowings (OFCBs), while External Commercial Borrowings (ECBs) contributed more than $1.3 billion.
Together, these channels have helped banks raise over $20.7 billion in foreign exchange since the scheme became operational on June 8, 2026.
The central bank introduced the concessional swap facility to strengthen India's balance of payments and encourage banks to mobilise foreign currency resources at a time when stable capital inflows remain important for the economy.
Under the scheme, banks can swap eligible foreign currency funds with the RBI at concessional terms, making it more attractive to raise overseas deposits and borrowings.
The initiative is also expected to support foreign exchange liquidity and reinforce India's external sector resilience.
The RBI has set different timelines for the facilities offered under the scheme.
The swap facility for FCNR(B) deposits will remain available until September 30, 2026, while the facility for OFCBs and ECBs will continue until December 31, 2026.
Banks can continue mobilising eligible foreign currency funds under these windows during the specified period.
The RBI's special forex swap scheme has already attracted more than $20.7 billion in inflows within weeks of its launch, with FCNR(B) deposits contributing the largest share. The strong response reflects banks' willingness to tap overseas funding under the concessional facility and supports the RBI's objective of strengthening India's balance of payments and foreign exchange position. As the scheme remains open for several more months, inflows could increase further.
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Published on: Jul 22, 2026, 11:40 AM IST
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