India’s forex boost: RBI’s swap scheme raises $20.72 billion so far

Reserve Bank of India’s special swap facility to attract foreign currency brought in $20.72 billion till July 17, with most of the money coming through Foreign Currency Non-Resident (Bank), or FCNR(B), deposits.The RBI said on Monday that the concessional swap scheme has seen steady foreign exchange inflows since it was launched on June 8, 2026. It added that FCNR(B) deposits have made up the biggest share of the total inflows.Data released by the RBI showed that FCNR(B) deposits contributed $17.406 billion of the total inflows. Overseas Foreign Currency Borrowings (OFCBs) brought in $1.97 billion, while External Commercial Borrowings (ECBs) accounted for $1.342 billion.The swap facility was announced by the RBI on June 5, 2026, as one of a series of measures aimed at strengthening India’s balance of payments and encouraging capital inflows.“With a view to strengthening our balance of payments and incentivising capital inflows, the RBI had announced a series of measures, including a facility for offering concessional swaps for fresh FCNR(B) deposits, OFCB and ECB inflows on June 5, 2026,” the central bank said.The facility became operational three days later, on June 8. The special window for fresh FCNR(B) deposits will remain open until September 30, 2026, while the concessional swap facility for OFCBs and ECBs will continue until December 31, 2026.The measures were introduced as part of the RBI’s efforts to strengthen the country’s external sector position and support foreign exchange liquidity amid global market uncertainties.When the scheme was announced, initial estimates suggested it could bring in as much as $70 billion in foreign exchange. However, in recent weeks, some voices have publicly expressed doubts over those projections.Despite the slower-than-expected start, banks remain optimistic that FCNR(B) deposits will see a sharp pick-up before the September 30 deadline for the special scheme.