Archive · 21 Sep 2026
RBI Forex Swap Facility Attracts $143.6 Billion Inflows
The Reserve Bank of India created a special program to bring more foreign money into Indian banks.
Banks could collect foreign-currency deposits and exchange that money with the RBI for rupees.
The program attracted about $143.6 billion.
Most of the money came from FCNR(B) deposits, which are deposits held in foreign currency by eligible non-residents.
Other inflows came from overseas foreign-currency borrowings and external commercial borrowings.
The extra money made the banking system’s available cash rise sharply.
The RBI then used measures such as reverse-repo auctions and open-market operations to absorb some of the surplus.
The rupee strengthened at first but later moved unevenly against the US dollar.
The RBI’s special dollar-rupee forex swap facility attracted $143.596 billion in foreign currency inflows by September 18.
FCNR(B) deposits accounted for $132.98 billion, followed by OFCBs at $5.32 billion and ECBs at about $5.30 billion.
The FCNR(B) window closed on August 31, while ECB and OFCB swaps remain available until December 31, 2026.
Banking-system liquidity rose from Rs 1.66 lakh crore on June 7 to a peak of Rs 11.16 lakh crore on September 6.
The rupee’s early gains after the scheme’s launch faded, while foreign-exchange reserves reached a reported high of $785.7 billion before declining.
- Who
- The Reserve Bank of India, authorised dealer banks, and entities using FCNR(B) deposits, OFCBs, and ECBs.
- What
- A special RBI dollar-rupee forex swap facility attracted $143.596 billion in foreign currency inflows.
- When
- The inflows were reported through September 18; the FCNR(B) window closed on August 31, while ECB and OFCB swaps remain open until December 31, 2026.
- Where
- India’s banking and foreign-exchange system.
- Why
- The facility was introduced to encourage fresh foreign-currency inflows, strengthen external buffers, reduce banks’ hedging costs, and support domestic liquidity.
- Total inflows
- $143.596 billion through September 18
- FCNR(B) deposits
- $132.98 billion
- OFCB contribution
- $5.32 billion
- ECB contribution
- About $5.30 billion
- Peak liquidity surplus
- Rs 11.16 lakh crore on September 6
- Foreign-exchange reserves
- Reached $785.7 billion before declining by nearly $5 billion in the week ended September 11
- FCNR(B) window
- Closed on August 31
