Overview
- The finance ministry said the RBI’s special USD‑INR swap facility raised about $73 billion in under 11 weeks, with roughly $65.4 billion coming from FCNR(B) deposits as of Aug. 21.
- The RBI moved the FCNR(B) deadline up to Aug. 31 after strong demand, a decision that surprised markets because Governor Sanjay Malhotra had publicly ruled out an early closure on Aug. 5.
- Most incoming dollars were added to the central bank’s foreign‑currency assets, which lifted reserves by about $9.9 billion in the week to Aug. 14 and left the rupee little changed.
- Analysts now say final FCNR(B) inflows could reach $90–100 billion by the revised close, raising questions about future one‑time dollar deliveries, hedging costs and how much currency the RBI will sell into markets.
- The next market drivers will be the RBI’s choice to release dollars, oil prices and foreign investor flows, which together will determine medium‑term pressure on the rupee and borrowing costs for Indian borrowers.