The Special Swap Facility of the Reserve Bank has received an excellent response from investors. As of July 17, the facility has seen foreign exchange inflows of over $20.7 billion, the bulk of which is from FCNR(B) deposits.
The Special Swap Facility of the Reserve Bank of India (RBI) has attracted forex inflows of over $20.7 billion as of July 17. This reflects a strong reaction from investors to the central bank’s measures aimed at strengthening the country’s balance of payments.
In a press release issued on Monday, the RBI said the swap facility launched in June to encourage foreign exchange inflows “has witnessed tremendous interest and has attracted consistent foreign exchange inflows from June 8, 2026 onwards.” The central bank said the facility was announced on June 5 and operationalized on June 8 “with a view to strengthening our balance of payments and stimulating capital inflows”. This facility is available in Fresh Foreign Currency Non-Resident (Bank) [FCNR(B)] Deposits cover Overseas Foreign Currency Borrowings (OFCBs) and External Commercial Borrowings (ECBs).
Where did how much money come from?
According to data released by RBI, the total foreign exchange inflows mobilized under this facility till July 17 stood at $20.718 billion. Of the total inflows, FCNR(B) deposits accounted for $17.406 billion, forming the bulk of the inflows. Overseas foreign currency borrowings contributed $1.97 billion, while external commercial borrowings brought in $1.342 billion, RBI data showed.
RBI said these figures are “based on data received from authorized dealer banks” and reflect flows mobilized under the Special Swap Facility till July 17.
When will the facility be available?
The central bank said the concessional swap facility for FCNR(B) deposits will be available till September 30, 2026, while for OFCBs and ECBs the facility will continue till December 31, 2026. These measures were announced by the RBI to support India’s external sector by encouraging foreign exchange inflows into the country. (ANI)
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