Forex boost: RBI’s special swap facility draws $40.8 billion in foreign inflows by July-end

Foreign currency inflows under the Reserve Bank of India‘s (RBI) special swap facility almost doubled in just two weeks, rising to $40.816 billion by July 31 from $20.718 billion as of July 17. According to the latest RBI data, Foreign Currency Non-Resident (Bank) [FCNR(B)] deposits remained the biggest contributor, accounting for the bulk of funds mobilised under the concessional swap scheme. The numbers are based on data received from Authorised Dealer Banks and reflect foreign exchange inflows raised through the RBI’s special facility. According to the RBI, FCNR(B) deposits contributed $36.725 billion by the end of July, making them the largest source of funds under the facility. Overseas Foreign Currency Borrowings (OFCBs) accounted for $2.575 billion, while External Commercial Borrowings (ECBs) added $1.516 billion.With $36.725 billion mobilised through FCNR(B) deposits, this route accounted for around 90% of the total inflows under the facility. Between July 17 and July 31, total inflows under the scheme increased by $20.098 billion, or around 97%. The rise was driven primarily by FCNR(B) deposits, which increased by $19.319 billion during the two-week period, climbing from $17.406 billion to $36.725 billion.During the same period, inflows through OFCBs rose by $605 million, while ECBs increased by $174 million.As of July 17, the RBI had reported total inflows of $20.718 billion under the facility. These comprised $17.406 billion through FCNR(B) deposits, $1.970 billion through OFCBs and $1.342 billion through ECBs.The latest figures indicate that inflows have almost doubled within a fortnight as the central bank’s measures to encourage foreign currency inflows continued to draw a robust response.

Facility to remain open until year-end

The RBI had announced the concessional swap facility on June 5, 2026, as part of a series of measures aimed at strengthening India’s balance of payments and encouraging capital inflows.“With a view to strengthening our balance of payments and incentivising capital inflows, the RBI had announced a series of measures, including a facility for offering concessional swaps for fresh FCNR(B) deposits, OFCB and ECB inflows on June 5, 2026,” the central bank said.The facility became operational on June 8, 2026.Under the current timelines, the special window for fresh FCNR(B) deposits will remain open until September 30, 2026, while concessional swaps for OFCBs and ECBs will continue until December 31, 2026.The measures were introduced as part of the RBI’s efforts to strengthen the country’s external sector position and support foreign exchange liquidity amid global market uncertainties. When the scheme was announced, initial estimates suggested it could mobilise as much as $70 billion in foreign exchange.