The Reserve Bank of India has mobilised $40.82 billion in foreign currency inflows through its concessional forex swap facility in less than two months, significantly strengthening the country’s foreign exchange reserves.
Key Highlights
- RBI attracted $40.82 billion through its concessional forex swap facility.
- The special scheme became effective on June 8, 2026.
- FCNR(B) deposits contributed $36.73 billion, the largest share.
- OFCB inflows stood at $2.58 billion.
- ECB inflows reached $1.52 billion.
- Initiative aims to strengthen India’s foreign exchange reserves and improve liquidity.
The Reserve Bank of India (RBI) has successfully attracted $40.82 billion in foreign currency inflows under its concessional forex swap facility as of July 31, 2026, delivering a major boost to the country’s foreign exchange reserves in less than two months.
The special forex mobilisation scheme came into effect on June 8, 2026, after being announced by the RBI on June 5. The initiative was designed to encourage banks to bring in fresh foreign currency resources and strengthen India’s external financial position amid global uncertainties.
According to the RBI, Foreign Currency Non-Resident (Bank) [FCNR(B)] deposits received the strongest response, contributing $36.73 billion, accounting for the majority of total inflows under the scheme.
Apart from FCNR(B) deposits, Overseas Foreign Currency Borrowings (OFCB) contributed $2.58 billion, while External Commercial Borrowings (ECB) added $1.52 billion to the total foreign currency inflows.
The concessional swap facility allows banks to mobilise foreign currency through FCNR(B) deposits, OFCB and ECB at favourable swap rates offered by the RBI. The move is intended to improve forex liquidity, strengthen reserves and provide greater stability to the Indian rupee.
The strong response to the scheme highlights investor confidence in India’s financial system and the effectiveness of the RBI’s policy measures. With FCNR(B) deposits contributing nearly 90 per cent of the total inflows, the initiative has emerged as one of the central bank’s most successful foreign exchange mobilisation programmes in recent years.
