RBI's swap facility mobilises $40.8 bn, nearly doubles in 2 weeks

The RBI's special swap facility attracted USD 40.816 billion in foreign exchange inflows by July 31, 2026, nearly doubling in two weeks. FCNR(B) deposits were the primary driver, contributing USD 36.725 billion to the total.

The Reserve Bank of India's (RBI) special swap facility has mobilised USD 40.816 billion in foreign exchange inflows as of July 31, 2026, nearly doubling the USD 20.718 billion recorded as of July 17, indicating continued strong response to the central bank's measures to encourage foreign currency inflows and strengthen the country's balance of payments.

Breakdown of Forex Inflows

According to the latest RBI data, Foreign Currency Non-Resident (Bank) [FCNR(B)] deposits accounted for the bulk of the inflows at USD 36.725 billion, while Overseas Foreign Currency Borrowings (OFCBs) contributed USD 2.575 billion. External Commercial Borrowings (ECBs) mobilised a further USD 1.516 billion. Together, the three sources took total forex inflows under the facility to USD 40.816 billion as of July 31.

Inflows Nearly Double in Two Weeks

The latest figure represents an increase of USD 20.098 billion, or around 97%, from the USD 20.718 billion reported by the RBI as of July 17. The earlier figure comprised USD 17.406 billion through FCNR(B) deposits, USD 1.970 billion through OFCBs and USD 1.342 billion through ECBs.

The sharp rise in inflows over the two-week period was largely driven by FCNR(B) deposits. These deposits increased by USD 19.319 billion, from USD 17.406 billion on July 17 to USD 36.725 billion by July 31. OFCB inflows increased by USD 605 million, while ECB inflows rose by USD 174 million over the same period.

About the RBI's Concessional Swap Facility

The RBI had announced the concessional swap facility on June 5, 2026, and operationalised it from June 8 with the objective of strengthening the balance of payments and incentivising capital inflows. The facility is available for fresh FCNR(B) deposits until September 30, 2026, while concessional swaps for OFCBs and ECBs will remain available until December 31, 2026.

FCNR(B) Emerges as Key Channel

The latest data suggests the facility has continued to attract foreign currency resources at a rapid pace. With nearly USD 41 billion mobilised by the end of July, FCNR(B) deposits have emerged as the dominant channel, accounting for about 90% of the total inflows.

The RBI's latest figures are based on data received from Authorised Dealer Banks and represent inflows mobilised under the special swap facility. (ANI)

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