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RBI Forex Swap Attracts Record $136.37 Billion Inflows
The Reserve Bank of India created a special program to bring more foreign currency into India.
By August 31, the program attracted about $136.37 billion.
Most of the money came through FCNR(B) deposits, which are foreign-currency deposits for eligible people living outside India.
Other money came through overseas foreign-currency borrowings and external commercial borrowings.
The amount was much larger than experts initially expected.
The extra foreign currency can help India’s reserves and give the central bank more ability to support the rupee.
It also adds money to the banking system, which could support lending.
The deposit window closed earlier than planned, but some parts of the program remain open into 2026.
The figures are provisional and may change after final checks.
The Reserve Bank of India’s special dollar-rupee forex swap facility attracted provisional inflows of $136.377 billion through August 31.
FCNR(B) deposits contributed $127.226 billion, while OFCBs brought in $5.260 billion and ECBs $3.891 billion.
The inflows far exceeded initial expectations, which ranged from $50-$60 billion to $70-$80 billion.
The facility was introduced on June 8 to strengthen foreign-exchange reserves, support liquidity and ease pressure on the rupee.
Fresh FCNR(B) deposits closed on August 31, while swaps remain available until September 11, 2026; ECB and OFCB participation continues until December 31, 2026.
- Who
- The Reserve Bank of India, authorised dealer banks, banks and foreign-currency depositors and borrowers.
- What
- A special US dollar-rupee forex swap facility attracted provisional foreign-exchange inflows of $136.377 billion.
- Where
- India’s banking and foreign-exchange system.
- When
- The inflows were recorded through August 31, 2026; the facility was introduced on June 8, 2026.
- Why
- To boost foreign-exchange reserves, support banking-system liquidity and provide greater capacity to manage pressure on the rupee amid global uncertainties, trade tensions, the Middle East conflict and higher energy prices.
Key facts
- Total inflows
- $136.377 billion through August 31, provisionally
- FCNR(B) deposits
- $127.226 billion
- Overseas foreign-currency borrowings
- $5.260 billion
- External commercial borrowings
- $3.891 billion
- Facility introduced
- June 8, 2026
- FCNR(B) window
- Closed for fresh deposits on August 31, one month earlier than initially planned
- Remaining deadlines
- Swaps may be availed with the RBI until September 11, 2026; ECB and OFCB participation remains open until December 31, 2026
- Data status
- Provisional and subject to final reporting, accounting, reconciliation and revision
Quotes
CareEdge Ratings
Ratings agency cited in the article
“The inflows have provided a material fillip to India’s foreign reserves, which had been on a declining trajectory since February 2026 and had fallen about 5% by 5 June.”
businesstoday.in
“The strong mobilisation under the scheme has augmented banking system liquidity and provided banks with greater near-term funding flexibility.”
businesstoday.in
Sources
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