2 weeks ago
RBI shortens FCNR(B) swap scheme as inflows hit $56.8 billion
India is bringing in a lot of money from abroad through special bank deposits called FCNR(B).
People who have money in other countries can put it into Indian banks through this plan.
A research group called SBI Research keeps track of this money.
They say the total could grow very large, reaching $65-70 billion for the special deposits alone.
When other kinds of foreign borrowing are included, it could be as much as $80-85 billion.
India's central bank, the RBI, runs this plan.
So much money came in so fast that the RBI decided to end the special offer one month earlier than planned.
The offer is now available only for deposits made until August 31, 2026.
This money helps Indian banks have more cash to lend and keeps the banking system strong.
The Indian rupee has stayed steady, around ₹95-95.5, even with all this money coming in.
SBI Research expects FCNR(B) deposits to reach $65-70 billion by the end of the scheme, with total mobilisation including OFCBs and ECBs potentially hitting $80-85 billion.
Cumulative mobilisation stood at $56.8 billion as of August 13, with about $16 billion raised in the 13 days between August 1 and August 13.
The RBI shortened the swap facility by one month, making it available only for deposits mobilised until August 31, 2026, with the swap window closing September 11.
The RBI had recouped around $31.2 billion in foreign currency assets as of August 7, equivalent to about 55% of the total amount mobilised.
SBI Research estimates conversion of proceeds could generate flows of around ₹8-9 lakh crore, boosting banking-sector liquidity, while India's forex reserves crossed $707 billion and the rupee stabilised around ₹95-95.5.
- Who
- SBI Research and the Reserve Bank of India (RBI), along with Indian banks mobilising the deposits.
- What
- Record inflows under the FCNR(B) deposit scheme and the RBI's decision to shorten its forex swap facility by one month.
- Where
- India.
- When
- Report dated August 15, 2026; cumulative mobilisation counted as of August 13, with the scheme deadline now August 31, 2026.
- Why
- To mobilise foreign currency deposits, boost banking-sector resources and systemic liquidity, and support financial stability.
Key facts
- Total mobilisation (as of Aug 13)
- $56.8 billion
- FCNR(B) deposits mobilised
- $52.3 billion
- OFCBs / ECBs mobilised
- $2.8 billion / $1.7 billion
- Expected FCNR(B) mobilisation
- $65-70 billion
- Expected total incl. OFCBs & ECBs
- $80-85 billion
- Scheme deadline
- August 31, 2026
- RBI swap window
- Until September 11, 2026
- RBI foreign currency assets recouped (Aug 7)
- $31.2 billion (about 55% of total mobilised)
Sources
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