The RBI swap facility has attracted over $20.7 billion in forex inflows since its launch on June 8, 2026. The Reserve Bank of India introduced this concessional swap scheme to strengthen India’s balance of payments and encourage capital inflows. As a result, banks and borrowers have responded with strong interest.
Key Details of the RBI Swap Facility
The RBI announced the swap facility on June 5, 2026, and operationalised it three days later. It offers concessional swap rates for fresh FCNR(B) deposits, Overseas Foreign Currency Borrowings (OFCBs), and External Commercial Borrowings (ECBs). The facility for FCNR(B) deposits remains open until September 30, 2026. Meanwhile, the window for OFCBs and ECBs stays available until December 31, 2026.
Based on data received from Authorised Dealer Banks, total forex inflows mobilised under the RBI swap facility up to July 17, 2026, are as follows:
- FCNR(B) Deposits: USD 17,406 million
- OFCBs: USD 1,970 million
- ECBs: USD 1,342 million
- Total: USD 20,718 million
What the RBI Swap Facility Means for India’s Economy
FCNR(B) deposits clearly dominate the inflows, contributing over 84% of the total amount. This signals strong confidence among Non-Resident Indians in parking funds in India. Additionally, the steady participation in OFCBs and ECBs shows that Indian corporates are actively using the facility to raise foreign funds at lower costs.
Therefore, the RBI swap facility is already delivering on its core objective. It is helping build India’s foreign exchange reserves at a critical time. For example, robust inflows reduce pressure on the rupee and support macroeconomic stability. However, the facility is time-bound, so further inflows will depend on market conditions over the coming months.
What This Means for Depositors and Borrowers
For NRI depositors, the concessional swap rates make FCNR(B) deposits more attractive than usual. As a result, many NRIs are locking in funds for longer tenors to benefit from the scheme. Eligible borrowers raising ECBs and OFCBs also gain from lower hedging costs under this limited window. Banks should therefore inform eligible customers promptly before the deadlines pass.
Source: RBI Press Releases
