Investors’ Strong Response Drives RBI to Restrict Swap to August‑Collected FCNR(B) Funds

Following a robust uptake by investors, the RBI announced that its swap facility for foreign currency non‑resident (bank) deposits will be applicable only to amounts mobilised by 31 August 2026. The swap benefit remains claimable until 11 September 2026.

Data from authorised dealer banks show that the discounted swap scheme has already pulled in $40.816 billion of foreign exchange, with $36.725 billion coming from FCNR(B) deposits, $2.575 billion from overseas foreign‑currency borrowings, and $1.516 billion from external commercial borrowings. RBI expects the FCNR(B) pool to expand to $65‑70 billion by 30 September, raising total inflows to $80‑85 billion.

During the week ending 7 August, India’s foreign‑exchange reserves rose by $14.136 billion, surpassing $707 billion, helped by higher foreign‑currency asset holdings and gold.