Overview
- The Reserve Bank of India disclosed Friday that its concessional forex swap facility had mobilised about $40.82 billion by July 31, 2026.
- Foreign Currency Non‑Resident (Bank) deposits dominated the total with roughly $36.725 billion, while Overseas Foreign Currency Borrowings added $2.575 billion and External Commercial Borrowings contributed $1.516 billion.
- The facility was announced in early June and put into operation on June 8 with two main incentives: zero‑cost hedging for FCNR(B) deposits and expanded access to long‑dated government securities.
- Inflows came quickly, topping $20 billion in the first month and nearly matching that level in the second month, and SBI Economic Research says the programme could attract about $80–85 billion if demand stays strong.
- FCNR(B) deposits are rupee‑denominated accounts for non‑resident holders that, under the swap terms, receive currency hedging from the RBI which has helped draw large, time‑sensitive inflows that may be front‑loaded before the September window closes.