Archive · 20 Jul 2026
RBI Measures Attract $20.7 Billion in Foreign Capital
The Reserve Bank of India (RBI) introduced special measures on June 5, 2026, to attract foreign capital.
These measures included a concessional swap facility that protected overseas capital from exchange rate risks.
As a result, commercial banks received over $20.7 billion in foreign currency inflows in just over a month.
Most of this money came from Foreign Currency Non-Resident (Bank) deposits, which totaled $17.4 billion.
Additionally, corporate and institutional channels brought in $1.97 billion through Overseas Foreign Currency Borrowings and $1.342 billion through External Commercial Borrowings.
The RBI noted that the swap facility has been very popular and has attracted steady foreign exchange inflows.
The FCNR(B) deposit window will remain open until September 30, 2026, while the windows for Overseas Foreign Currency Borrowings and External Commercial Borrowings will extend until December 31, 2026.
RBI's measures attracted $20.7 billion in foreign capital in just over a month.
The bulk of the inflows, $17.4 billion, came from FCNR(B) deposits.
Additional inflows included $1.97 billion from Overseas Foreign Currency Borrowings and $1.342 billion from External Commercial Borrowings.
The concessional swap facility, introduced on June 8, 2026, protected overseas capital from exchange rate risks.
The FCNR(B) deposit window will be open until September 30, 2026, while other facilities extend until December 31, 2026.
- Who
- Reserve Bank of India (RBI) and commercial banks
- What
- Introduction of special measures to attract foreign capital
- When
- Between June 8 and July 17, 2026
- Where
- India
- Why
- To anchor India's balance of payments and reinforce external sector resilience
Pro-RBI Measures
Critics of RBI Measures
Economic Stability
Pro-RBI Measures
The RBI's measures have successfully stabilized the balance of payments and reinforced external sector resilience.
Critics of RBI Measures
Critics argue that the measures may lead to short-term stability but could create long-term dependency on foreign capital.
Foreign Capital Inflow
Pro-RBI Measures
The influx of $20.7 billion in foreign capital is a positive sign of investor confidence in India's economic policies.
Critics of RBI Measures
Some critics believe that the influx is temporary and may not sustain long-term economic growth.
- Total Foreign Capital Inflow
- $20.7 billion
- FCNR(B) Deposits
- $17.4 billion
- Overseas Foreign Currency Borrowings
- $1.97 billion
- External Commercial Borrowings
- $1.342 billion
- Concessional Swap Facility Start Date
- June 8, 2026
- FCNR(B) Deposit Window End Date
- September 30, 2026
- OFB and ECB Window End Date
- December 31, 2026