RBI ends FCNR(B) forex swap facility early as banks attract $56.85 billion in foreign inflows
Deposits can be mobilised until August 31, while swaps with RBI will remain available until September 11; ECB and OFCB schemes continue till December 31
The Reserve Bank of India (RBI) on Friday announced that it has decided to end its swap facility for FCNR(B) deposits ahead of schedule, citing a positive response to the scheme and the subsequent foreign exchange inflows.
RBI said in a press statement that based on the encouraging response to the Swap Facility for FCNR(B) deposits and the resultant forex inflows, it has been decided that the Swap facility for FCNR(B) deposits will be available only for deposits mobilized till 31 August, 2026.
“The swaps under this facility FCNR(B) deposits, may be availed with RBI till 11 September, 2026. The scheme for ECBs and OFCBs will continue to be open till 31 December, 2026, as hitherto,” the statement added.
According to the initial plan, banks may use the swap with the RBI until 16 October, 2026, and deposits could be mobilized under the program until 30 September, 2026.
As of 13 August, 2026, foreign inflows under the facility totaled USD 56.85 billion, according to RBI data. With USD 52.3 billion, FCNR(B) deposits made up the majority of this, followed by OFCBs with USD 2.81 billion and ECBs with USD 1.74 billion.
Banks can mobilize new FCNR(B) deposits with a duration of three to five years and swap the dollar inflows with the RBI at the current spot rate due to the FCNR(B) swap facility, which was first announced on 5 June and operationalized on 8 June.
