RBI FCNR inflows have emerged as a key focus, with Foreign Currency Non-Resident (Bank) deposits accounting for $127.226 billion of forex inflows under the Reserve Bank of India’s special USD-INR swap facility as of August 31, 2026.
According to the RBI’s September 2 press release, total provisional forex inflows under the facility stood at $136.377 billion. The figure includes inflows through FCNR(B) deposits, Overseas Foreign Currency Borrowings (OFCBs) and External Commercial Borrowings (ECBs).
FCNR(B) Accounts for Most Inflows
FCNR(B) deposits contributed $127.226 billion, making them the largest component of the reported inflows. OFCBs accounted for $5.260 billion, while ECBs contributed $3.891 billion.
The RBI introduced the special USD-INR forex swap facility on June 8, 2026. The FCNR(B) component remained open until August 31, while the facility for ECBs and OFCBs will remain available until December 31, 2026. The RBI said the reported figures are provisional and remain subject to final reporting, accounting and reconciliation.
The RBI’s forex measures come as pressure has also emerged in India’s financial markets. The 10-year government bond yield briefly crossed 7% on Wednesday, its first breach of that level in three months, amid a broader global selloff in government debt.
The rupee, meanwhile, remained around 94.97 against the U.S. dollar after the RBI sold dollars through state-run banks. The intervention helped offset pressure from surging oil prices and rising U.S. Treasury yields.
The global bond selloff also pushed Japan’s yields to 30-year highs. Separately, shadow lenders are seeking to raise at least ₹10,000 crore through bonds, according to Bloomberg, as they move to lock in borrowing costs before yields rise further.
The RBI’s latest data therefore puts the scale of FCNR(B) inflows at the centre of the current forex market developments, alongside heightened pressure across the currency and bond markets.
Indian Rupee Strengthens After RBI Raises $136.1 Billion
The Indian rupee strengthened as much as 0.7% to ₹194.2813 per dollar, a one month high, after the RBI reported banks raised around $127 billion through a special NRI deposit scheme and another $9.15 billion through two measures, totaling about $136.15 billion.
The inflows were well above the RBI Governor’s earlier $80 billion estimate, boosting market sentiment and leaving room for further rupee appreciation.
Banking System Liquidity Hits Four Year High
Banking system liquidity surged to ₹6.65 lakh crore on August 31, the highest since May 2022, mainly due to FCNR(B) deposit inflows under the RBI’s concessional swap facility. The weighted average call rate fell to 4.98%, below the 5.25% repo rate.
The RBI offered ₹10 lakh crore through VRRR auctions on Monday, but banks parked only ₹3.74 lakh crore, showing weak demand for the liquidity absorption tool. HDFC Bank expects the surplus to ease to around ₹4–4.5 lakh crore by mid September.
Source: RBI
