RBI’s interim foreign currency measures attract $40.82 billion inflows till July 31
The Reserve Bank of India's (RBI) interim foreign currency measures have drawn capital inflows totaling USD 40.82 billion, according to data provided by the central bank on Saturday.
This is mainly driven by robust mobilisation through Foreign Currency Non-Resident (Bank) [FCNR (B)] deposits.
According to the RBI data, the Overseas Foreign Currency Borrowings (OFCBs) made up USD 2.575 billion of the total, while FCNR (B) deposits supplied USD 36.725 billion. An additional USD 1.516 billion came from External Commercial Borrowings (ECBs).
“The swap facility has seen avid interest and attracted steady forex inflows since June 8, 2026,” the RBI stated.
The latest mobilization is a major reply to the central bank's plan to increase foreign exchange inflows and improve India's external sector standing in the face of international financial instability.
As part of a larger package intended to promote foreign currency inflows and bolster the nation's balance of payments, the RBI introduced the concessional swap facility on June 5. However, three days later, on 8 June, the plant was put into service.
While the facilities associated with OFCBs and ECBs will continue until December 31 of this year, the window for new FCNR (B) deposits will remain open until September 30, 2026.
In order to enable new FCNR (B) deposits as well as foreign currency and external commercial borrowings, the program gives banks access to concessional foreign exchange swaps. The objective of the agreement is to lower the cost of hedging foreign exchange exposure and increase banks' interest in seeking capital from international sources.
FCNR (B) deposits have been the main driver of the robust mobilization. Banks have attempted to draw in money from non-resident clients by providing comparatively greater yields under the limited-period facility.
In addition, the economics of obtaining foreign currency resources have been further enhanced by the regulatory concessions linked to additional deposits.
