RBI swap facility helps mobilise $40.8 bn forex inflows by July-end 2026
The Reserve Bank of India’s concessional swap facility for fresh FCNR(B) deposits and foreign currency borrowings has helped mobilise $40,816 million in forex inflows up to July 31, 2026, based on reporting by authorised dealer banks.
India’s external finance landscape received a steady boost in early FY2026-27, with the Reserve Bank of India (RBI) reporting healthy foreign exchange inflows mobilised under its concessional swap facility.
In a press release, the RBI said it had introduced a facility offering concessional swaps for fresh Foreign Currency Non-Resident (Bank) or FCNR(B) deposits, as well as Overseas Foreign Currency Borrowings (OFCBs) and External Commercial Borrowings (ECBs). The facility was announced on June 5, 2026 and operationalised on June 8, 2026.
Based on data received from Authorised Dealer (AD) Banks, the RBI reported that total forex inflows mobilised under the facility stood at **USD 40,816 million** up to **July 31, 2026**.
What the RBI facility covers and timelines The RBI’s swap facility is aimed at supporting fresh inflows across three channels:
- **FCNR(B) deposits** — foreign currency deposits mobilised by banks from non-resident Indians and overseas customers.
- **OFCBs** — overseas foreign currency borrowings.
- **ECBs** — external commercial borrowings by eligible Indian entities.
The RBI outlined separate availability windows:
- The facility is available **up to September 30, 2026** for **FCNR(B) deposits**.
- It is available **up to December 31, 2026** for **OFCBs and ECBs**.
By clearly defining these windows, the framework provides predictability for banks and borrowers planning fresh foreign currency resource mobilisation during the year.
Inflows so far: FCNR(B) leads the mobilisation As per the RBI’s reporting (based on information submitted by AD banks), the inflows mobilised up to July 31, 2026 were:
- **FCNR(B) Deposits:** **USD 36,725 million**
- **OFCBs:** **USD 2,575 million**
- **ECBs:** **USD 1,516 million**
- **Total:** **USD 40,816 million**
The data indicates that **FCNR(B) deposits form the largest share** of the mobilisation so far, reflecting strong participation from depositors and banks in the early part of the facility’s operational period.
For the broader economy, such inflows can be supportive in multiple ways: they can strengthen the availability of foreign currency resources in the system and improve confidence in external sector financing, especially when global financial conditions are evolving.
At the same time, the RBI’s update highlights an important operational aspect: inflows are being tracked through **regular reporting by authorised dealer banks**, bringing transparency to how the facility is being utilised.
What to watch next With the facility continuing through the remainder of 2026 (with different cut-offs for deposits and borrowings), market participants will watch how mobilisation trends evolve closer to the respective deadlines.
Banks may continue to focus on attracting FCNR(B) deposits within the September window, while firms and borrowers evaluating OFCBs or ECBs have a longer runway till end-December.
As with all external funding, the eventual economic impact depends on how these resources are deployed—whether for business expansion, refinancing, or productive capital expenditure—while maintaining prudent risk management.
**Why it matters:** The RBI’s concessional swap facility, and the steady reporting of its uptake, can help improve visibility and confidence around India’s foreign currency inflows, supporting a stable external financing environment for banks and businesses.
