RBI's Swap Facility to Attract $80-85 Billion in Foreign Inflows

The Reserve Bank of India has introduced a special swap facility to attract foreign currency inflows.

This facility is expected to bring in between $80 to $85 billion.

As of July 17, a significant portion of this amount, $17.406 billion, has already come in through FCNR(B) deposits.

The facility is available for FCNR(B) deposits until September 30, 2026, and for OFCBs and ECBs until December 31, 2026.

The goal is to improve India's balance of payments and make the economy more stable.

Experts believe this will result in a surplus of over $50 billion for the fiscal year 2026-27, which is much better than previous estimates.

However, while the initial response was positive, global market uncertainties and volatile energy prices have made the situation a bit uncertain.