The Reserve Bank of India (RBI) disclosed that foreign exchange inflows via its special USD-INR swap facility reached USD 136.38 billion by August 31. Most of these inflows were attributed to Foreign Currency Non-Resident (Bank), or FCNR(B), deposits, according to a press release issued by the RBI on Wednesday.

Breakdown of Inflows

The provisional figures reveal that FCNR(B) deposits constituted the majority, bringing in USD 127.23 billion. Additionally, Overseas Foreign Currency Borrowings (OFCBs) accounted for USD 5.26 billion, while External Commercial Borrowings (ECBs) added USD 3.89 billion to the total. The central bank introduced this special swap arrangement in June 2026, specifically to facilitate inflows through FCNR(B) deposits, ECBs, and OFCBs.

The RBI noted, “RBI introduced a special USD-INR Forex Swap facility covering FCNR(B) deposits, ECB, and OFCB inflows on June 08, 2026.” Under this structure, the window for FCNR(B) deposits was available until August 31, whereas the provisions for ECBs and OFCBs are set to continue until the close of December.

Timeline for Forex Swap Facility

In a prior announcement made on August 14, 2026, the RBI confirmed that the scheme for FCNR(B) deposits was open until August 31, 2026, while the facility would remain accessible for ECBs and OFCBs until December 31, 2026. Data indicates a considerable acceleration in inflows occurring in the latter days of the FCNR(B) deposit window.

As per the earlier update from the RBI, total inflows were documented at USD 72.85 billion as of August 21. This total included USD 65.40 billion from FCNR(B) deposits, indicating that the inflows experienced a substantial increase of approximately USD 63.53 billion, or 87 percent, in the span between August 21 and August 31.

Surge in FCNR(B) Deposits

It is significant that FCNR(B) deposits alone surged by around USD 61.83 billion within this short timeframe, constituting over 93 percent of the total inflows reported as of August 31. The central bank emphasised that these figures are provisional and subject to final reporting, accounting, and reconciliation.

This special swap facility stands as a strategic initiative by the RBI to bolster foreign currency reserves while providing an avenue for non-resident Indians to deposit their foreign earnings in Indian banks without incurring exposure to currency fluctuations.

The rapid rise in inflows suggests a strong engagement from the non-resident community in utilising this facility, further reflecting confidence in the Indian economy amidst global financial uncertainties.

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