Foreign currency inflows under the Reserve Bank of India's (RBI) special swap facility almost doubled in just two weeks, rising to $40.816 billion by July 31 from $20.718 billion as of July 17, according to the latest RBI data reported by Business-Today.
The numbers, based on data received from Authorised Dealer Banks, reflect foreign exchange inflows raised through the RBI's special facility. Business-Today reported that FCNR(B) deposits remained the biggest contributor, accounting for the bulk of funds mobilised under the concessional swap scheme.
Inflows Nearly Double in a Fortnight
Between July 17 and July 31, total inflows under the scheme increased by $20.098 billion, or around 97%, according to Business-Today. The rise was driven primarily by FCNR(B) deposits, which increased by $19.319 billion during the two-week period, climbing from $17.406 billion to $36.725 billion. During the same period, inflows through OFCBs rose by $605 million, while ECBs increased by $174 million.
| Component | July 17 | July 31 | Change |
|---|---|---|---|
| FCNR(B) deposits | $17.406B | $36.725B | +$19.319B |
| OFCBs | $1.970B | $2.575B | +$0.605B |
| ECBs | $1.342B | $1.516B | +$0.174B |
| Total | $20.718B | $40.816B | +$20.098B |
FCNR(B) deposits contributed $36.725 billion by the end of July, making them the largest source of funds, accounting for around 90% of total inflows under the facility. Overseas Foreign Currency Borrowings (OFCBs) accounted for $2.575 billion, while External Commercial Borrowings (ECBs) added $1.516 billion.
Facility Timeline and Policy Context
The RBI announced the concessional swap facility on June 5, 2026, as part of a series of measures aimed at strengthening India's balance of payments and encouraging capital inflows. The facility became operational on June 8, 2026.
"With a view to strengthening our balance of payments and incentivising capital inflows, the RBI had announced a series of measures, including a facility for offering concessional swaps for fresh FCNR(B) deposits, OFCB and ECB inflows on June 5, 2026," the central bank said.
Under current timelines, the special window for fresh FCNR(B) deposits will remain open until September 30, 2026, while concessional swaps for OFCBs and ECBs will continue until December 31, 2026, according to Business-Today.
Implications for External Sector and Capital Flows
The measures were introduced as part of the RBI's efforts to strengthen the country's external sector position and support foreign exchange liquidity amid global market uncertainties. When the scheme was announced, initial estimates suggested it could mobilise as much as $70 billion in foreign exchange, Business-Today reported. The latest figures indicate inflows have almost doubled within a fortnight as the central bank's measures continued to draw a robust response.
For treasury and trade finance professionals monitoring emerging-market capital flows, the facility's concessional swap window provides a defined funding channel for banks and corporates mobilising FCNR(B) deposits, OFCBs and ECBs, with the FCNR(B) window closing on September 30, 2026, and the OFCB/ECB window extending to December 31, 2026. The 90% concentration in FCNR(B) deposits underscores how non-resident deposit flows are driving the reserve build-up, a factor relevant to assessing India's balance-of-payments funding mix.
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