Record Forex Inflows Surge Through FCNR(B) Deposits as RBI reports $72.8 Billion USD-INR Swap Rally
The Reserve Bank of India (RBI) has reported significant foreign exchange inflows channeled through its specialized currency swap facility. As of August 21, 2026, the total forex inflow stood at $72,848 million, demonstrating strong participation in the designated mechanism designed to bolster Forex liquidity and stabilize the USD-INR market.Understanding RBI’s Foreign Currency Swap Facility
The special USD-INR Forex Swap facility was introduced by the RBI on June 08, 2026. This scheme is specifically designed to accommodate forex inflows derived from three categories: Non-Resident FCNR(B) deposits, External Commercial Borrowings (ECBs), and Overseas Foreign Currency Borrowings (OFCBs).The mechanism provides critical support for foreign currency exposure in the domestic market. The RBI has clearly delineated different timelines for instruments under this facility to ensure steady liquidity management.
Composition of Forex Capital Inflows
Data released by Authorised Dealer Banks reveals a marked composition of these inflows as of August 21, 2026. The aggregated total inflow reported through the swap mechanism reached $72,848 million across all categories.FCNR(B) Deposits were the dominant contributor to this figure, recording an impressive inflow of $65,397 million. This high level of deposit activity highlights the role of foreign-backed deposits in strengthening forex reserves.
While FCNR deposits led the charge, ECBs and OFCBs also contributed meaningfully to the overall capital infusion. External Commercial Borrowings (ECBs) brought in $2,591 million, complementing the inflows from Overseas Foreign Currency Borrowings (OFCBs), which totaled $4,860 million.
Timeline and Future Outlook for Forex Financing
The RBI has set specific duration parameters for the continued availability of this facility. The scheme is open until August 31, 2026, specifically for FCNR(B) deposits.However, support continues for other instruments beyond this date. ECBs and OFCBs have a longer operational window under the swap facility, which remains open until December 31, 2026. This extended timeline offers markets greater predictability regarding forex financing options.
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