Archive · 21 Jul 2026
RBI's Forex Swap Facility Attracts $20.72 Billion Inflows
The Reserve Bank of India (RBI) introduced a special scheme to attract foreign currency deposits from Non-Resident Indians (NRIs).
This scheme offers attractive interest rates and incentives for deposits in foreign currency.
Since it started on June 8, 2026, it has brought in $20.72 billion in foreign exchange.
Most of this money came from FCNR(B) deposits, which are special accounts for NRIs.
The RBI and banks are encouraging NRIs to invest more by offering higher interest rates and better incentives.
The scheme is set to continue until September 30, 2026, for FCNR(B) deposits and until December 31, 2026, for other types of foreign borrowings.
Banks are also planning to reach out more to NRIs living in different parts of the world to keep the momentum going.
RBI's swap facility has attracted $20.72 billion in forex inflows since June 8, 2026.
Most of the inflows came from FCNR(B) deposits, with $17.406 billion mobilized.
The scheme offers higher interest rates and incentives for NRIs to invest.
Banks are intensifying their outreach to NRIs to sustain the momentum.
The scheme is available until September 30, 2026, for FCNR(B) deposits and until December 31, 2026, for OFCBs and ECBs.
- Who
- Reserve Bank of India (RBI) and Non-Resident Indians (NRIs)
- What
- RBI's swap facility for attracting forex inflows
- When
- June 8, 2026 to July 17, 2026
- Where
- India
- Why
- To strengthen the country's balance of payments and incentivize capital inflows
Proponents of RBI's Swap Facility
Critics of RBI's Swap Facility
Effectiveness of the Scheme
Proponents of RBI's Swap Facility
The swap facility has successfully attracted significant forex inflows, strengthening the country's balance of payments.
Critics of RBI's Swap Facility
The scheme may lead to short-term gains but could create long-term vulnerabilities due to reliance on foreign capital.
Interest Rates and Incentives
Proponents of RBI's Swap Facility
Higher interest rates and incentives have encouraged NRIs to invest, boosting forex inflows.
Critics of RBI's Swap Facility
High interest rates could lead to inflationary pressures and may not be sustainable in the long run.
- Total Forex Inflows
- $20,718 million
- FCNR(B) Deposits
- $17,406 million
- OFCBs
- $1,970 million
- ECBs
- $1,342 million
- Scheme Announcement Date
- June 5, 2026
- Scheme Operationalization Date
- June 8, 2026
- FCNR(B) Deposit Scheme End Date
- September 30, 2026
- OFCBs and ECBs Scheme End Date
- December 31, 2026
Sources
RBI swap facility attracts forex inflows to tune of $20 billion in 5 weeks
RBI swap facility brings nearly ₹2 lakh crore in forex inflows since June
RBI's Forex Swap Facility Attracts USD 20.72 Billion Inflows Since June; FCNR(B) Deposits Lead
RBI swap facility draws 20 billion dollars in foreign inflows as rupee faces pressure - Telegraph India
