MUMBAI, India (Diya TV) — India attracted more than $127 billion in Foreign Currency Non-Resident (FCNR-B) deposits through a special Reserve Bank of India forex swap facility, according to central bank data. The strong response from the Indian diaspora helped the country boost foreign exchange inflows amid global market uncertainty.
The Reserve Bank of India launched the special USD-INR forex swap facility on June 8, 2026. The facility covered FCNR-B deposits, Overseas Foreign Currency Borrowings and External Commercial Borrowings. The RBI designed the measures to strengthen India’s external sector and improve foreign exchange liquidity.
The central bank received total inflows of $136.377 billion through the measures as of Aug. 31. FCNR-B deposits accounted for the largest share of those inflows.
The RBI recorded provisional FCNR-B inflows of $127.226 billion by Aug. 31. The figure highlights strong demand among non-resident Indians for the special deposit scheme. Banks offered attractive interest rates to encourage foreign currency deposits under the program.
The strong response also prompted the RBI to close the FCNR-B window earlier than planned. The central bank initially set Sept. 30 as the closing date. However, it advanced the deadline to Aug. 31 after the facility met its objective ahead of schedule.
FCNR-B deposits allow non-resident customers to keep money in foreign currencies through Indian banks. Both the principal amount and the interest remain payable in the same foreign currency. As a result, depositors can avoid direct exposure to changes in the value of the Indian rupee.
The latest figures show that FCNR-B deposits drove most of the foreign exchange inflows under the RBI initiative. Overseas Foreign Currency Borrowings added $5.26 billion. Meanwhile, External Commercial Borrowings brought in $3.891 billion.
Together, these sources pushed total foreign exchange inflows to $136.377 billion by the end of August.
The RBI introduced the forex swap facility as global financial markets faced continued uncertainty. Currency movements, changing interest rates and wider economic risks have increased pressure on emerging markets. Therefore, stronger foreign exchange reserves and stable external funding remain important for India.
The latest inflow data also points to the importance of the Indian diaspora in supporting the country’s external financing needs. Non-resident Indians responded strongly to the interest rates offered through the FCNR-B deposit route.
However, the RBI will continue the swap facility for Overseas Foreign Currency Borrowings and External Commercial Borrowings. The window for these two categories will remain open until Dec. 31, 2026, as originally planned.
The early closure of the FCNR-B window marks a significant response to the RBI’s special foreign exchange initiative. The deposits brought in a substantial amount of foreign currency in a short period. At the same time, the continued availability of the borrowing facility will provide another channel for overseas funding.
The RBI’s latest data therefore shows that the June 8 initiative achieved a major part of its goal within less than three months. The $127 billion-plus FCNR-B inflow stands out as the biggest component of the $136.377 billion raised through the measures.
For India, the inflows provide additional foreign exchange liquidity at a time when global markets remain uncertain. For non-resident Indians, the scheme offered an opportunity to earn interest on foreign currency deposits through Indian banks.
The RBI’s decision to end the FCNR-B window early reflects the scale of the response. Meanwhile, the remaining borrowing windows will continue through the end of 2026.
