The Reserve Bank of India (RBI) has reported that $20.7 billion has been raised through its concessional swap facility for FCNR(B) deposits, OFCBs, and ECBs as of July 17, reflecting strong investor interest after the scheme was announced on June 5 and operationalised from June 8. The collection is almost twice the amount speculated to have been raised, according to the RBI's out-of-turn disclosure, which bankers view as a market management and credibility move after the rupee came under pressure and inched toward its record low.
Breakdown of Inflows
Of the total mop-up, $17.4 billion came from FCNR(B) deposits, $2 billion from OFCBs, and $1.3 billion from ECBs. The window will remain open till September 30 for FCNR(B) deposits and December 31 for OFCB and ECB flows. By the end of the swap window, bankers expect mobilisation of about $80 to $85 billion.
| Instrument | Amount Raised ($ billion) | Window Closes |
|---|---|---|
| FCNR(B) | 17.4 | September 30 |
| OFCB | 2.0 | December 31 |
| ECB | 1.3 | December 31 |
| Total | 20.7 |
Banker Reactions and Targets
Senior private bank CEOs noted that FCNR(B) inflows were likely to be below original estimates because of NRI tax treatment, liquidity and regulatory constraints in key markets such as the UAE, and operational curbs on Indian banks' representative offices in the Gulf. Bankers said large sums could have come only through leverage, most likely from tax-free jurisdictions such as the UAE.
Indian Bank MD & CEO Binod Kumar said the bank is targeting about $2 billion in FCNR(B) deposits by end September 2026, with a pipeline of nearly $1 billion, though actual deposits until last week stood at $150 million. Central Bank of India MD & CEO Kalyan Kumar reported mobilisation of about $8.4 million under the special FCNR(B) window so far, targeting $400 million by end-September 2026, with leverage provided through its international banking unit at GIFT City. Union Bank of India MD & CEO Asheesh Pandey said the bank has mobilised around $106 million under the FCNR(B) scheme, with a target of $1.5-2 billion by September 2026, adding that FCNR(B) is being used to replace wholesale deposits over time and support CASA growth, expecting flows to pick up as awareness improves.
RBL Bank disclosed raising $150 million, while no other private banks have disclosed their collections. SBI is understood to be offering leverage to depositors through its GIFT City IBU.
Implications for Trade Finance and Business
For CFOs and treasury professionals, the surge in capital inflows under the RBI swap facility directly impacts the cost of capital for trade finance. By boosting foreign exchange reserves and stabilising the rupee, the RBI reduces the need for aggressive monetary tightening that would otherwise raise domestic borrowing costs. Companies with foreign currency exposures — especially importers and exporters — benefit from reduced FX volatility, lowering hedging costs. The concessional swap windows effectively provide cheaper dollar funding to banks, which can be passed on to trade credit lines. However, bankers caution that regulatory constraints in Gulf markets and NRI tax treatment may limit the pace of future inflows, so firms should monitor the window deadlines closely and lock in favourable rates while the facility remains open.
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