Summary of this article
FCNR(B) deposits reached $127.23 billion by August 31.
Total forex inflows under RBI facility touched $136.38 billion.
RBI closed FCNR(B) window one month ahead of schedule.
India has attracted $127.23 billion through Foreign Currency Non-Resident (Bank), or FCNR (B) deposits under the Reserve Bank of India’s (RBI's) special USD-INR forex swap facility by August 31, 2026, according to provisional RBI data.
The facility was launched on June 8, 2026, covering FCNR (B) deposits, Overseas Foreign Currency Borrowings (OFCBs) and External Commercial Borrowings (ECBs). It was part of the RBI’s measures to strengthen India’s external sector and support foreign exchange liquidity amid uncertainty in global markets.
FCNR (B) Deposits Lead Inflows
Total foreign exchange inflows under the facility stood at $136.377 billion as on August 31. FCNR (B) deposits accounted for $127.226 billion, making them the largest source of inflows.
The strong response from non-resident Indians (NRIs) prompted the RBI to advance the closure of the FCNR (B) window, according to a PTI report. The window was originally scheduled to close on September 30, but was brought forward to August 31 after the objective of the facility was achieved ahead of schedule.
FCNR (B) deposits are fixed deposits held in foreign currencies by eligible non-residents. The principal and interest are payable in the same foreign currency in which the deposit is held. Under the special facility, banks offered attractive interest rates to mobilise foreign currency deposits.
FCNR (B) deposits accounted for about 93 per cent of the total $136.377 billion inflows recorded under the facility by August 31.
ECBs And OFCBs Add To Total
OFCBs contributed $5.26 billion to the total inflows by August 31, while ECBs accounted for $3.891 billion. Together, the three components brought in total inflows under the special facility to $136.377 billion.
The facility provided a mechanism for banks and eligible borrowers to access foreign currency liquidity through the RBI’s USD-INR swap arrangements. The measure was introduced against a backdrop of uncertainty in global financial markets and a focus on maintaining adequate foreign exchange liquidity.
The composition of the inflows shows that FCNR (B) deposits accounted for the overwhelming share, while OFCBs and ECBs contributed smaller amounts.
ECB And OFCB Swap Window Runs Till December
The closure of the FCNR(B) window on August 31 does not apply to the other components of the facility. The swap scheme for ECBs and OFCBs is scheduled to operate until December 31, 2026, as originally planned.
The RBI’s data cover foreign currency deposits mobilised from non-residents along with foreign currency borrowings and external commercial borrowings. The $127.226 billion collected through FCNR (B) deposits formed the bulk of the $136.377 billion recorded by the central bank at the end of August.
