RBI's USD-INR Swap Facility Sparks Unprecedented Forex Inflows into India, - 24th August 2026 - Ministry of Finance - Gazette Notification PDF

Executive Summary The Reserve Bank of India’s USD-INR swap facility, launched on June 8, 2026, has mobilized an unprecedented US$ 73 billion in foreign exchange inflows in under eleven weeks. Due to the scheme exceeding its objectives ahead of schedule, the RBI has advanced the closure of the FCNR(B) window from September 30, 2026, to August 31, 2026. This exercise has significantly fortified India’s external buffers through cost-effective, long-term non-resident deposits and institutional funding.

Key Points / Main Content

Mobilization Achievements

• Total foreign exchange inflows reached US$ 73 billion as of August 21, 2026.
• FCNR(B) deposits alone accounted for US$ 65.40 billion of the total inflows.
• The scheme outperformed the 2013 FCNR(B) swap exercise, which raised US$ 26 billion over approximately three months.

Scheme Scope and Target

• The facility covers Foreign Currency Non-Resident (Bank) [FCNR(B)] deposits, Overseas Foreign Currency Borrowings (OFCB), and External Commercial Borrowings (ECB).
• The success is attributed to the strong participation of the Indian diaspora and their confidence in the national banking sector.

Revised Timeline

• Original Closure Date: September 30, 2026.
• New Closure Date: August 31, 2026.
• The timeline was shortened due to the rapid achievement of the scheme’s primary objectives.

Impact Analysis

Reserve Bank of India (RBI) Impact Successfully strengthened national foreign exchange reserves and external buffers with high cost-efficiency. Action Required Administer the early closure of the FCNR(B) window on August 31, 2026.

Indian Banks Impact Raised a collective US$ 73 billion in foreign currency through deposits and borrowings in an eleven-week period. Action Required Process remaining inflows and finalize transactions before the revised August 31 deadline.

Non-Resident Indians (NRIs) / Indian Diaspora Impact Served as the primary contributors to the scheme’s success, particularly through FCNR(B) deposits. Action Required Ensure any intended deposits or investments under this facility are completed prior to the advanced closure date.

Government of India Impact The economy’s external stability has been bolstered despite global financial challenges, reflecting institutional strength. Action Required No specific action mentioned other than the continued oversight of economic growth strategies.