RBI Swap Facility Attracts Over $20.7 Billion in Forex Inflows by July 17

The Reserve Bank of India's (RBI) special swap facility has successfully drawn significant foreign exchange inflows, totaling more than $20.7 billion as of July 17. This strong investor response highlights the effectiveness of the central bank's measures designed to bolster India's balance of payments.

The facility, operationalized on June 8, was announced on June 5 with the explicit goal of strengthening the country's external sector and encouraging capital to flow into India. It offers incentives for fresh Foreign Currency Non-Resident (Bank) [FCNR(B)] deposits, Overseas Foreign Currency Borrowings (OFCBs), and External Commercial Borrowings (ECBs).

Data from the RBI indicates that FCNR(B) deposits constitute the largest portion of the inflows, amounting to $17.406 billion. OFCBs contributed $1.97 billion, while ECBs added $1.342 billion to the total forex inflows. These figures are based on data received from Authorized Dealer Banks.

The concessional swap facility for FCNR(B) deposits will remain open until September 30, 2026. Meanwhile, the facility for OFCBs and ECBs will continue until December 31, 2026, providing a sustained window for foreign currency inflows into the country.