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Indian Banks Attract Record $127 Billion Through RBI Swap Facility
Indian banks collected a very large amount of foreign money through a Reserve Bank of India program.
Most of the money came through FCNR(B) deposits, which are deposits made in foreign currency.
The deposits totaled about $127 billion by August 31, 2026.
Altogether, the program brought in about $136 billion through several types of instruments.
This was almost five times the amount collected in a similar 2013 campaign.
The program was planned to last until September 30, but it ended early because the response was stronger than expected.
Some FCNR(B) transactions could still be completed until September 11.
The dollar-rupee exchange rate changed very little during the period, which the article says may indicate that the program helped support the rupee.
Indian banks reported $127.226 billion in FCNR(B) deposits under the Reserve Bank of India’s Swap Facility by August 31, 2026.
Total foreign-exchange inflows reached $136.377 billion, including $5.260 billion from OFCBs and $3.891 billion from ECBs.
The 2026 FCNR(B) collection was nearly five times the approximately $26 billion raised under the 2013 campaign.
The facility was originally scheduled to run until September 30 but ended early on August 31 after strong demand and inflows.
FCNR(B) swaps could still be availed until September 11, while ECB and OFCB arrangements remained open until December 31, 2026.
- Who
- The Reserve Bank of India and Indian authorised dealer banks, with participation from non-resident depositors and other foreign-currency investors.
- What
- A Reserve Bank of India Swap Facility generated $136.377 billion in reported foreign-exchange inflows, including $127.226 billion in FCNR(B) deposits.
- Where
- India’s banking and foreign-exchange system.
- When
- The facility began on June 8, 2026, was announced for early closure on August 14, and ended on August 31, 2026; certain FCNR(B) swaps remained available until September 11.
- Why
- The facility was introduced to strengthen India’s balance of payments and encourage capital inflows.
Key facts
- FCNR(B) deposits
- $127.226 billion reported by August 31, 2026
- Total forex inflows
- $136.377 billion
- OFCB contribution
- $5.260 billion
- ECB contribution
- $3.891 billion
- 2013 comparison
- Approximately $26 billion in FCNR(B) deposits
- Original end date
- September 30, 2026
- Revised end date
- August 31, 2026
Sources
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