The Reserve Bank of India’s concessional swap facility has drawn more than $20.7 billion, equivalent to nearly ₹2 lakh crore, in foreign exchange inflows through July 17. This reflects strong investor interest in the central bank’s steps to bolster the nation’s balance of payments.
In a statement released on Monday, the RBI noted that the facility, launched in June to promote foreign currency inflows, has generated consistent inflows since June 8, 2026.
The RBI introduced the measure on June 5, 2026, covering fresh FCNR(B) deposits along with OFCB and ECB inflows. It became active on June 8.
Data from the RBI shows total inflows under the facility reached $20.718 billion by July 17. FCNR(B) deposits accounted for the largest portion at $17.406 billion, followed by overseas foreign currency borrowings at $1.97 billion and external commercial borrowings at $1.342 billion. The figures are based on reports from authorised dealer banks.
The facility for FCNR(B) deposits will stay open until September 30, 2026, while the one for OFCBs and ECBs runs until December 31, 2026. The steps aim to support India’s external sector by attracting overseas currency inflows.
The concessional swap reduces hedging costs for banks raising foreign funds, allowing them to offer better rates and draw larger deposits. The RBI takes on much of the currency risk, which helps boost inflows and supports the rupee amid pressure from high oil prices.
Some banks reported that early inflows have been lower than expected, though they anticipate stronger activity ahead of the September deadline. Activity picked up after the RBI issued clarifications at the end of June.
