Archive · 24 Aug 2026
Finance Ministry Hails Strong Response to RBI Forex Swaps
The Reserve Bank of India offered special deals to encourage money to come into Indian banks.
These deals covered deposits and borrowing in foreign currencies.
By August 21, they had brought in $72.85 billion.
Of this amount, $65.4 billion came from FCNR(B) deposits.
The Finance Ministry said the response was spectacular.
It said the money strengthened India’s financial safety cushion.
The ministry also praised Indians living abroad for trusting Indian banks.
Because deposits arrived faster than expected, the RBI closed the offer earlier than planned, on August 31 instead of September 30.
The Finance Ministry called the response to RBI concessional swap facilities “spectacular.”
The facilities attracted $72.85 billion in total by August 21.
FCNR(B) deposits accounted for $65.4 billion of the funds received.
The ministry said the inflows strengthened India’s external buffers with maximum cost-efficiency.
The RBI moved the swap window’s closing date to August 31 from the originally announced September 30.
- Who
- The Reserve Bank of India, the Finance Ministry, and depositors including the Indian diaspora.
- What
- Concessional foreign-currency swap facilities attracted $72.85 billion, including $65.4 billion through FCNR(B) deposits.
- When
- The facilities became operational on June 8; the RBI announced on August 14 that the window would close on August 31, with funds reported through August 21.
- Where
- Through India’s banking system and its foreign-currency deposit and borrowing facilities.
- Why
- To add to India’s external buffers; the RBI shortened the window because funds, particularly FCNR(B) deposits, arrived faster than expected.
- Total funds received
- $72.85 billion as on August 21
- FCNR(B) deposits
- $65.4 billion as on August 21
- Facilities operational since
- June 8
- Earlier closing date announced
- August 31
- Initially announced closing date
- September 30
- Finance Ministry assessment
- The response was “spectacular” and strengthened external buffers with “maximum cost-efficiency”