NEW DELHI — The Reserve Bank of India’s special dollar-rupee swap facility has attracted $73 billion in foreign exchange inflows in less than 11 weeks, the Finance Ministry said Monday.
The facility, launched June 8 for Foreign Currency Non-Resident Bank, or FCNR(B), deposits, Overseas Foreign Currency Borrowings and External Commercial Borrowings, has generated strong demand since its introduction.
FCNR(B) deposits accounted for $65.40 billion of the total inflows as of Aug. 21, reflecting significant participation from non-resident Indians, according to the ministry.
The government said the program has become India’s largest and fastest foreign-currency mobilization effort, surpassing the RBI’s 2013 FCNR(B) swap program, which raised about $26 billion over roughly three months.
The strong response prompted the RBI to move up the closing date for the FCNR(B) window to Aug. 31 from Sept. 30, 2026, after the program achieved its foreign exchange target ahead of schedule.
The Finance Ministry said the inflows have strengthened India’s external financial buffers amid uncertainty in global markets.
Indian banks have also stepped up efforts to attract FCNR(B) deposits, including by offering higher interest rates following the RBI’s decision to shorten the swap window.
The facility was introduced to boost dollar inflows amid pressure on the rupee. The RBI said the earlier closure followed an “encouraging response” to the program. (Source: IANS)
