RBI forex swap facility mobilises $73 billion, driven by $65.4 billion in FCNR deposits
The massive capital inflow builds crucial foreign-currency buffers for India's banking system amid heightened global market volatility.
The Reserve Bank of India’s special USD-INR forex swap facility has mobilised $73 billion in foreign exchange inflows in just under 11 weeks, with foreign currency non-resident (bank) – or FCNR(B) – deposits accounting for $65.4 billion, according to the finance ministry.
The facility, launched on 8 June for FCNR(B) deposits, overseas foreign currency borrowings (OFCBs) and external commercial borrowings (ECBs), received a strong response from non-resident Indians, prompting the RBI to advance the closure of the FCNR(B) window to 31 August from 30 September.
FCNR(B) accounts are term deposits maintained by non-resident Indians with authorised banks in permitted foreign currencies. The deposits are denominated in foreign currency and are repatriable, allowing depositors to hold their savings in foreign currency rather than taking direct rupee exchange-rate exposure. Under RBI rules, FCNR(B) deposits can have maturities ranging from one year to five years, subject to prescribed conditions.
The strong response comes against the backdrop of heightened volatility in global financial markets and is expected to strengthen India’s external-sector resilience by augmenting foreign-currency resources available to the banking system.
The latest mobilisation has already surpassed the scale of the RBI’s 2013 FCNR(B) swap scheme, which raised around $26 billion over roughly three months. The latest facility has mobilised $73 billion with about a week still remaining before the revised closure of the FCNR(B) window.
FCNR(B) inflows drive surge
FCNR(B) deposits have been the primary contributor to the latest inflows, with $65.4 billion mobilised through the instrument. The government said the response reflects continued confidence among the Indian diaspora in India’s banking system and economy.
The scheme was aimed at securing large-scale, long-term non-resident deposits and commercial institutional funding to strengthen India’s external buffers. The government described the mobilisation as one of India’s largest and fastest foreign-currency mobilisation exercises.
The finance ministry said the response from non-resident depositors demonstrates their continued economic and financial engagement with India and confidence in the country’s growth prospects.
About the Author
Harsh Kumar is a policy reporter at Mint (HT Media Group), where he covers the Ministry of Commerce and Industry along with key departments of the Ministry of Finance, including the Department of Economic Affairs (DEA) and the Department of Financial Services (DFS). With over five years of experience in business and economic journalism, he has developed strong expertise in tracking policy developments and their wider economic impact.<br><br>He has previously worked with Business Standard, Moneycontrol, and Outlook Money, where he reported extensively on banking, financial services, and the broader economy. Over the years, he has built a reputation for delivering accurate, insightful, and impactful stories, supported by a keen eye for detail and a consistent track record of breaking exclusive news.<br><br>An alumnus of Jamia Millia Islamia, Harsh closely follows regulatory changes and key economic trends shaping India’s financial and industrial landscape. His reporting aims to simplify complex policy issues for a wider audience while maintaining depth and credibility.<br><br>Outside of work, he enjoys tracking policy developments, finding scoops, and travelling, reflecting his curiosity about how economic decisions shape everyday life.
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