New Delhi, Aug 25: The Reserve Bank of India’s special dollar-rupee swap facility has attracted $73 billion in foreign exchange inflows in just 11 weeks, giving a significant boost to India’s external financial position and highlighting strong confidence among non-resident Indians and overseas investors.
Launched on June 8, the facility was introduced to encourage foreign currency inflows through FCNR(B) deposits, Overseas Foreign Currency Borrowings and eligible External Commercial Borrowings.
According to the Finance Ministry, total foreign exchange mobilisation reached $73 billion as of August 21, with $65.40 billion coming through FCNR(B) deposits. The strong response from NRIs has emerged as a major feature of the scheme.
The latest mobilisation has also surpassed the scale of India’s previous FCNR(B) swap programme in 2013, which raised around $26 billion over approximately three months.
The strong response has prompted the RBI to bring forward the closure of the FCNR(B) swap window. The facility, which was originally scheduled to remain open until September 30, will now close on August 31, 2026.
The scheme has encouraged banks to step up efforts to attract foreign currency deposits from NRIs, including through competitive interest rates and wider outreach.
The inflows are expected to strengthen India’s foreign exchange position and provide an additional buffer against volatility in global financial markets. The mobilisation also comes at a time when policymakers are closely monitoring movements in the rupee and global capital flows.
The Finance Ministry said the response demonstrates continued confidence in India’s banking system and economy, with the Indian diaspora playing an important role in channeling foreign currency into the country’s financial system.
The RBI’s initiative is expected to support India’s external-sector stability while providing banks with access to additional foreign currency resources.