The RBI has released data on the amount of FCNR(B) deposits raised by Indian banks so far under the central bank’s Swap Facility, which was introduced on June 8.
In its second update since the RBI’s Swap Facility was launched, the Reserve Bank of India said the measures had mobilised $40.8 billion ($40,816 million) through July 31, with foreign currency non-resident deposits accounting for about $36.7 billion ($36,725 million) of the total.
How Fast The Money Came In
According to the first data release issued by the RBI on July 20, $17,406 million had been mobilised as of July 17. This means that $17 billion in FCNR(B) inflows were received within 40 days of the RBI’s Swap Facility’s launch in June. In the next 13-odd days, another $19.7 billion was added to the kitty. Overall, in about 52 days, nearly $36.7 billion has come in as FCNR (B) deposits. The pace itself is the headline here; more money came in over the following 13 days than in the first 40 days combined.
Beating The 2013 Campaign
The 2013 campaign raised approximately $26 billion, a figure that has now been exceeded, with a total FCNR (B) collection of nearly $36.7 billion, with two months remaining for the scheme to end. At the time of the RBI’s announcement of this facility, the banking industry expected up to $80 billion in FCNR(B) deposits. Going by the pace of inflows, that figure is likely to be surpassed by the time schemed ends on September 30.
The Full Breakdown
As of July 31, Overseas Foreign Currency Borrowing (OFCB) stood at $2,575 million, while External Commercial Borrowings (ECBs) totaled $1,516 million, bringing the total to $40,816 million, including FCNR(B) deposits of $36,725 million.
The RBI’s Swap Facility was operationalised on June 8, 2026, and will remain available up to September 30, 2026, for FCNR(B) deposits, and up to December 31, 2026, for OFCBs and ECBs.
FCNR’s outstanding balance
The RBI’s most recent set of data on NRI deposits is for May 2026. As of the end of May, the FCNR’s outstanding balance was $34 billion, up slightly from $33.7 billion at the end of March.
The June-end data is expected to show a significantly higher balance, with consistently higher balances lasting until at least September. According to an SBI Research report, total FCNR(B) deposit flows are expected to reach USD 26-28 billion on July 23 alone.
What is RBI’s Swap Facility
RBI’s Swap Facility was introduced to strengthen India’s balance of payments and encourage capital inflows. Following this, the RBI announced a series of measures, including a facility offering concessional swaps for fresh FCNR(B) deposits.
First, on June 8, the RBI agreed to protect banks from currency impact by hedging the depreciation of the Indian rupee against the dollar under the Swap Facility for FCNR(B) Deposits, mobilised for a minimum tenor of three years and a maximum tenor of five years. In its next move, on June 18, the RBI removed the ceiling, thereby allowing banks to offer higher interest rates to NRIs.
Disclaimer: This article is based on official data released by the Reserve Bank of India and is intended for informational purposes only. It should not be construed as investment, financial, or legal advice. NRIs and investors are advised to consult their bank or a qualified financial advisor before making any decisions regarding FCNR(B) deposits or related instruments. Figures are subject to change based on subsequent RBI updates.