RBI Ends FCNR Swap Facility Early as Dollar Inflows Surge

The Reserve Bank of India is like India's biggest bank, in charge of the country's money.

In June, it made a special offer to bring money into India from Indians who live in other countries.

Banks collect these deposits, called FCNR(B) deposits, in foreign money like US dollars.

The RBI promised to protect banks if the value of the Indian rupee went down.

The offer worked so well that lots of money flowed into India very quickly.

Because the response was so strong, the RBI decided to end this part of the offer early.

Banks can still bring in new deposits until August 31, 2026, and the RBI will finish those deals on September 11, 2026.

Other parts of the scheme will stay open until December 31, 2026.

All this money helped India's foreign money savings grow past $707 billion.

The rupee also gained a little value, closing at 95.42 against the US dollar.