RBI Swap Facility Pulls in $72.85 bn Forex Inflows by Aug 21

The Reserve Bank of India's (RBI) special USD-INR forex swap facility attracted total foreign currency inflows of USD 72.85 billion as of August 21, 2026, according to data released by the central bank on Saturday, August 22. The figure marks a sharp acceleration in mobilisation and has already surpassed the scale of the RBI's comparable 2013 scheme.

The facility, introduced on June 8, 2026, was designed to channel foreign currency inflows through three routes: Foreign Currency Non-Resident (Bank), or FCNR(B), deposits; external commercial borrowings (ECBs); and overseas foreign currency borrowings (OFCBs). The measure is part of a broader effort to attract foreign currency into the country and strengthen domestic forex liquidity.

FCNR(B) Deposits Dominate the Inflows

FCNR(B) deposits emerged as the dominant contributor, accounting for USD 65.40 billion of the total inflows, or nearly 90 per cent of the overall figure as of August 21. The remaining inflows came from OFCBs, which contributed USD 4.86 billion, and ECBs, which brought in USD 2.59 billion.

The latest numbers mark a sharp acceleration in mobilisation. As of July 31, banks had mobilised USD 40.816 billion through the facility, including USD 36.725 billion through FCNR(B) deposits, meaning FCNR(B) mobilisation rose by more than USD 28.6 billion in the roughly three weeks that followed.

Surpassing the 2013 Benchmark

The current mobilisation has already exceeded the RBI's 2013 special swap scheme, under which banks had raised around USD 26 billion through FCNR(B) deposits and total foreign currency inflows, including overseas borrowings, were around USD 34 billion.

Individual lenders have set out their own targets under the facility. State Bank of India said on August 8 it had already mobilised around USD 6 billion through FCNR(B) deposits and was targeting USD 10 billion. Bank of Baroda targeted USD 4-5 billion through a combination of FCNR(B) deposits, medium-term notes and OFCBs, while Punjab National Bank targeted USD 2.5 billion in FCNR(B) deposits. Canara Bank guided for USD 2.3-2.5 billion, and Indian Bank set a USD 2 billion FCNR(B) target.

Window Deadlines Ahead

The window for FCNR(B) deposits under the facility will close on August 31, 2026, while ECBs and OFCBs will remain eligible under the facility until December 31, 2026. The RBI has reiterated that the scheme remains open for FCNR(B) deposits until the end of this month, with the other two routes continuing through the end of the year.

Business Standard reported the central bank's data release on August 22. For retail and institutional observers, the facility's performance underscores how central bank swap windows can rapidly shift domestic forex liquidity. As with any foreign-currency exposure, the eventual cost and benefit to the rupee will depend on exchange-rate movements over the life of the borrowings, and market participants should weigh those dynamics against the headline inflow figures.