The RBI USD-INR Swap Facility has mobilised US$73 billion in foreign exchange inflows in less than 11 weeks, with FCNR(B) deposits accounting for US$65.40 billion as of August 21, 2026, according to information released by the Press Information Bureau (PIB).
The special facility was launched on June 8, 2026, covering FCNR(B) deposits, Overseas Foreign Currency Borrowings (OFCB) and External Commercial Borrowings (ECB). The scale of mobilisation has exceeded the pace and size of the Reserve Bank of India’s 2013 FCNR(B) swap scheme, which raised about US$26 billion over roughly three months.
FCNR(B) deposits drive inflows
FCNR(B) deposits made up the largest share of the latest mobilisation, highlighting the strong response from Non-Resident Indians. The government said the participation reflects confidence among the Indian diaspora in the country’s banking system and economy.
The total inflows reached US$73 billion by August 21, with another week remaining before the end of the original window. The government described the exercise as the largest and fastest foreign-currency mobilisation undertaken by India.
The strong response has also led the RBI to bring forward the closure of the FCNR(B) window. It was initially scheduled to remain open until September 30, 2026, but will now close on August 31, 2026, after the objective was achieved ahead of schedule.
The government said the facility has helped secure large-scale, long-term non-resident deposits and commercial institutional funding on tap, strengthening India’s external buffers with cost efficiency.
HSBC Boosts India Bond Holdings
HSBC has bought at least $3 billion of Indian government bonds since July, mainly five-year maturities, using funds raised through diaspora deposits. The bank raised more than $6 billion under the RBI’s FCNR(B) swap scheme, the highest among participating lenders.
The RBI facility attracted $65.4 billion in deposits by August 21, far above expectations, leading to an early closure deadline of August 31. Meanwhile, the India-US 10-year yield spread has narrowed to around 210 basis points, raising concerns over whether foreign inflows can continue after the scheme ends.
