On Saturday, the Reserve Bank of India released data showing that its concessional foreign exchange swap facility has attracted $40.82 billion in overseas currency since it opened in June 2026. The facility was launched on June 5 and became operational on June 8.
Authorized dealer banks reported total inflows of $40.816 billion as of July 31. FCNR(B) deposits contributed $36.725 billion, OFCBs $2.575 billion and ECBs $1.516 billion. FCNR(B) deposits account for the majority of the mobilisation.
The swap allows banks to borrow foreign currency at a lower cost, making it easier to raise funds from overseas sources. It also reduces hedging costs for banks that hold foreign‑currency exposure. The arrangement encourages banks to offer higher returns to non‑resident customers.
The latest figures show a sharp jump from the July 17 update, when total mobilisation was $20.72 billion. At that time, FCNR(B) deposits were $17.41 billion, OFCBs $1.97 billion and ECBs $1.34 billion.
SBI Research now expects FCNR(B) mobilisation to reach $65–70 billion, up from earlier $40–45 billion estimates. Including OFCBs and ECBs, total inflows could hit $80–85 billion. Large public‑sector banks and foreign lenders like HSBC are leading the participation.
The RBI introduced the facility amid rising crude oil prices, volatile markets and strong demand for US dollars. By attracting stable foreign‑currency inflows, the move aims to strengthen reserves and ease pressure on the balance of payments. It also reduces the need for spot‑market intervention.