RBI to close FCNR(B) forex swap facility window on 31 August

The Reserve Bank of India (RBI) will close the window for mobilising foreign currency non-resident (bank) or FCNR(B) deposits under its special USD-INR forex swap facility on 31 August 2026. This follows an encouraging response that has generated substantial foreign exchange inflows.

Under the facility, forex inflows through FCNR(B) deposits stood at $52.30 billion as of 13 August 2026, accounting for the bulk of the total $56.85 billion raised through the scheme. Inflows through overseas foreign currency borrowings (OFCBs) stood at $2.81 billion, while external commercial borrowings (ECBs) contributed $1.74 billion.

The RBI had introduced the special USD-INR forex swap facility on 8 June 2026 covering FCNR(B) deposits, ECBs and OFCBs. The central bank said the FCNR(B) window will now be available only for deposits mobilised until 31 August 2026. Swaps against eligible FCNR(B) deposits can be availed with the RBI until 11 September 2026.

The scheme for ECBs and OFCBs, however, will continue to remain open until 31 December 2026, as previously announced.

The strong response to the FCNR(B) facility has helped bring foreign currency into the domestic financial system at a time when the rupee and India's external financing conditions have remained under focus.

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