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RBI Forex Swap Draws $72.85 Billion Inflows by August 21
The Reserve Bank of India created a program to help bring more dollars into India.
By August 21, the program had attracted $72.85 billion.
Most of the money came from deposits made by Indians living outside the country.
Some money also came from overseas loans taken by Indian companies and banks.
HDFC Bank separately raised $1.75 billion by selling dollar bonds.
Other Indian banks have also borrowed money from overseas investors.
The RBI offers a special currency swap rate of 1.5% a year for eligible borrowing.
This lower cost has encouraged banks to seek more dollar funding abroad.
The RBI said its special USD-INR forex swap facility received $72.85 billion in inflows by August 21, 2026.
FCNR(B) deposits accounted for $65.40 billion, followed by OFCBs at $4.86 billion and ECBs at $2.59 billion.
The facility began on June 8, 2026; FCNR(B) participation ends August 31, while ECB and OFCB access continues until December 31.
HDFC Bank raised $1.75 billion through two overseas dollar-bond tranches, its largest overseas fundraise since 2008.
IDFC First Bank, Kotak Mahindra Bank, ICICI Bank and State Bank of India have also raised funds in overseas debt markets.
- Who
- The Reserve Bank of India, Indian banks and overseas depositors and lenders are involved.
- What
- The RBI reported $72.85 billion in inflows through its special USD-INR forex swap facility, while Indian banks increased overseas dollar fundraising.
- Where
- The inflows came through India’s banking system and overseas dollar markets; HDFC Bank issued its bonds through its GIFT City branch.
- When
- The inflows were reported through August 21, 2026. The facility began June 8, 2026; FCNR(B) access ends August 31 and ECB/OFCB access ends December 31.
- Why
- The RBI offered a concessional 1.5% annual foreign-exchange swap rate to reduce funding costs and encourage dollar inflows and overseas borrowing.
Key facts
- Total forex inflows
- $72.85 billion through August 21, 2026
- FCNR(B) deposits
- $65.40 billion
- OFCB inflows
- $4.86 billion
- ECB inflows
- $2.59 billion
- HDFC Bank issuance
- $1.75 billion in two dollar-bond tranches
- RBI swap rate
- 1.5% annually for an average maturity of at least three years
- Facility deadlines
- August 31 for FCNR(B) deposits and December 31 for ECBs and OFCBs
Sources
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