RBI Dollar-Rupee Swap Facility Draws $73 Billion in Forex Inflows
New Delhi — The Reserve Bank of India’s special dollar-rupee swap facility has attracted $73 billion in foreign exchange inflows in less than 11 weeks, according to a Finance Ministry statement Monday.
The facility, launched June 8, covers Foreign Currency Non-Resident (Bank) deposits, Overseas Foreign Currency Borrowings and External Commercial Borrowings.
FCNR(B) deposits accounted for $65.4 billion of the total, reflecting strong participation from non-resident Indians.
The Finance Ministry said the program has become India’s largest and fastest foreign-currency mobilization effort, surpassing the RBI’s 2013 FCNR(B) swap scheme, which raised about $26 billion over roughly three months.
With inflows reaching $73 billion as of Aug. 21, the RBI has moved up the closing date for the FCNR(B) window from Sept. 30 to Aug. 31, 2026, after determining that the facility had already achieved its objective.
“By securing large-scale, long-term non-resident deposits and commercial institutional funding entirely on tap, the Government of India has fortified its external buffers with maximum cost-efficiency,” the Finance Ministry said.
The ministry also described the response as evidence of continued confidence in the Indian economy despite challenges in global financial markets.
Indian banks have stepped up efforts to attract additional FCNR(B) deposits by offering higher interest rates following the RBI’s decision to shorten the swap window.
The facility was introduced in June to boost dollar inflows at a time when the rupee was under pressure. The RBI said the deadline was brought forward because of the “encouraging response” and the amount of foreign exchange already mobilized. (Source: IANS)
