Overview
- RBI Governor Sanjay Malhotra said banks have mobilised roughly $32 billion so far through the special swap facilities, with most of that coming from FCNR(B) deposits.
- The swap scheme, launched on June 5 and operational from June 8, lets banks bring in 3–5 year foreign‑currency deposits from non‑resident Indians while the RBI covers exchange‑rate hedging costs.
- SBI Research has sharply raised its forecast to $65–70 billion of FCNR(B) inflows and $80–85 billion total including OFCBs and ECBs based on rapid mobilisation and expected renewals of maturing deposits.
- Despite the inflows, the rupee has continued to weaken and SBI Research says the RBI’s daily net intervention has averaged only about $14 million, a pace it sees as too small to curb depreciation.
- Public sector banks are the main intermediaries driving the mobilisation and public sector companies have formally asked the RBI to extend the concessional swap/hedge windows to ensure continued dollar access for capex and debt needs.