Daijiworld Media Network - New Delhi
New Delhi, Jul 20: The Reserve Bank of India's concessional foreign exchange swap facility has attracted $20.718 billion in overseas inflows since its launch in June, reflecting strong investor and NRI interest in the scheme, the central bank said on Monday.
According to an RBI statement, the inflows were recorded up to July 17, 2026, following the operationalisation of the facility on June 8.
The bulk of the inflows—$17.406 billion—came through Foreign Currency Non-Resident (Bank) [FCNR(B)] deposits, while Overseas Foreign Currency Borrowings (OFCBs) contributed $1.97 billion. External Commercial Borrowings (ECBs) accounted for the remaining $1.342 billion.
The central bank said the swap facility has generated sustained interest from banks and investors, resulting in a steady stream of foreign exchange inflows since its rollout.
The scheme is part of a broader set of measures announced by the RBI on June 5, 2026, to strengthen India's balance of payments and encourage foreign capital inflows. It offers concessional swap arrangements for fresh FCNR(B) deposits, ECBs and OFCBs.
The facility became operational on June 8 and will remain available until September 30, 2026, for FCNR(B) deposits, while the window for OFCBs and ECBs will continue until December 31, 2026.
The RBI's update comes days after senior executives of public sector banks and financial institutions informed Finance Minister Nirmala Sitharaman that the scheme had received an encouraging response from Non-Resident Indians (NRIs), driven by higher interest rates and attractive incentives offered under the programme.
Bank executives said they expect inflows to accelerate further as lenders continue expanding outreach initiatives aimed at the Indian diaspora across major global markets.
During a recent review meeting, the Finance Minister urged banks to intensify engagement with NRIs, introduce innovative deposit products and maintain the momentum of foreign currency deposit mobilisation throughout the remaining duration of the scheme.
Officials also informed the minister that banks are offering attractive returns on FCNR(B) deposits, including five-year tenures, aided by the temporary suspension of the interest rate ceiling on fresh deposits accepted under the RBI scheme.
According to bank executives, the strongest interest has come from NRIs residing in Singapore, Hong Kong, West Asia, the United Kingdom, the United States and several other overseas destinations.
The heads of banks also expressed confidence that mobilisation through External Commercial Borrowings (ECBs) would gain further momentum during the third quarter of the current financial year, covering the October–December 2026 period.