2 weeks ago
RBI's concessional swap facility attracts USD 56.85 billion forex inflows
The Reserve Bank of India is the central bank that looks after money in India.
It made a special offer to help bring more foreign money into the country.
Banks that receive foreign currency deposits can swap them with the RBI at a cheaper rate.
This friendly offer, called a concessional swap facility, started on June 8, 2026.
The offer worked very well, bringing in about 56.85 billion US dollars.
Most of that money, 52.3 billion dollars, came from special deposits called FCNR (B).
Because so many banks used the offer, the RBI will only accept new deposits until August 31.
This money helped India's savings of foreign money, called forex reserves, grow to 707 billion dollars.
This makes India's money situation stronger, especially when the rupee loses value against the US dollar.
The RBI's concessional swap facility attracted about USD 56.85 billion in forex inflows till August 13.
FCNR (B) deposits contributed USD 52.3 billion, while OFCBs and ECBs contributed USD 2.805 billion and USD 1.741 billion respectively.
The facility will now be available only for deposits mobilised till August 31, instead of the earlier September 30 cut-off, with swaps availed till September 11, 2026.
India's forex reserves jumped by USD 14.136 billion to USD 707.002 billion in the week ended August 7.
The measures aim to strengthen India's external sector and support foreign exchange liquidity as the rupee has depreciated significantly against the US dollar amid global uncertainties.
- Who
- The Reserve Bank of India (RBI)
- What
- Announced that its concessional swap facility attracted about USD 56.85 billion in forex inflows and moved the cut-off for FCNR (B) deposits to August 31
- Where
- India; announced from Mumbai
- When
- Friday, August 14, 2026 (inflows tracked till August 13; facility operational since June 8, 2026)
- Why
- To strengthen India's external sector and support foreign exchange liquidity amid global market uncertainties and rupee depreciation against the US dollar
RBI's view
CareEdge Ratings' view
Impact of the swap facility
RBI's view
The RBI says the measures are part of efforts to strengthen India's external sector position and support foreign exchange liquidity amid global market uncertainties.
CareEdge Ratings' view
CareEdge Ratings says that unlike 2013, the rupee has not appreciated significantly due to global uncertainties, geopolitical risks and weaker capital flow dynamics, and that the RBI's large forward forex obligations may constrain any visible rise in reserves; the scheme should be viewed primarily as a liquidity and stability measure rather than a driver of sharp currency appreciation or reserve accumulation.
Key facts
- Total forex inflows attracted
- USD 56.85 billion (till August 13)
- FCNR (B) deposits
- USD 52.3 billion
- Overseas Foreign Currency Borrowings (OFCBs)
- USD 2.805 billion
- External Commercial Borrowings (ECBs)
- USD 1.741 billion
- New cut-off date for FCNR (B) deposits
- August 31 (earlier: September 30)
- Last date to avail swaps
- September 11, 2026
- Forex reserves as of August 7, 2026
- USD 707.002 billion (up USD 14.136 billion)
- Swap facility operationalised
- June 8, 2026
Quotes
Reserve Bank of India
Central bank of India
“"Unlike 2013, the rupee has not appreciated significantly due to global uncertainties, geopolitical risks, and weaker capital flow dynamics. Additionally, RBI’s large forward forex obligations may constrain any visible rise in reserves,"”
indianexpress.com
“"The Swaps under this facility, i.e. FCNR (B) deposits, may be availed with the RBI till September 11, 2026,"”
theprint.in







