5X THE 2013 FCNR(B) HAUL: BANKS PULL IN RECORD $127 BILLION IN 84 DAYS
Indian banks have collected FCNR(B) deposits worth $127 billion under the RBI’s Swap Facility, which closed earlier than originally planned, on August 31.
As reported by Authorised Dealer Banks as of August 31, 2026, forex inflows under the facility totaled $1,36,377 million ($136 billion). Of this, FCNR(B) deposits accounted for $1,27,226 million ($127 billion), OFCBs contributed $5,260 million, and ECBs added $3,891 million.
The 2013 campaign raised approximately $26 billion in FCNR(B) deposits, a figure that has now been exceeded comfortably. In fact, the current $127 billion collection is nearly five times that amount. At the time of the RBI’s announcement of this facility, the banking industry expected up to $80 billion in FCNR(B) deposits, so the final number has beaten even the industry’s own estimate.
The USD/INR exchange rate on June 8, 2026, was about 94.95 INR per USD, depreciating slightly to 94.97 INR per USD by September 2, 2026. Given the scale of the dollar inflows the facility attracted, this near-flat movement suggests the hedging support may have helped cushion the rupee from sharper depreciation.
Why did the facility end early?
The central bank’s Swap Facility was introduced on June 8 and was originally meant to run till September 30. However, based on the encouraging response to the Swap Facility for FCNR(B) deposits and the resulting forex inflows, the RBI announced on August 14 that the facility would end on August 31.
Swaps under this facility, that is, FCNR(B) deposits, may still be availed with the RBI till September 11, 2026. The scheme for ECBs and OFCBs will continue to be open till December 31, 2026, the RBI said.
RBI’s Swap Facility was introduced to strengthen India’s balance of payments and encourage capital inflows. Following this, the RBI announced a series of measures, including a facility offering concessional swaps for fresh FCNR(B) deposits.
First, on June 8, the RBI agreed to protect banks from currency impact by hedging the depreciation of the Indian rupee against the dollar under the Swap Facility for FCNR(B) Deposits, mobilised for a minimum tenor of three years and a maximum tenor of five years. In its next move, on June 18, the RBI removed the ceiling, thereby allowing banks to offer higher interest rates to NRIs.
Disclaimer: This article is based on official data released by the Reserve Bank of India and is intended for informational purposes only. It should not be construed as investment, financial, or legal advice. NRIs and investors are advised to consult their bank or a qualified financial advisor before making any decisions regarding FCNR(B) deposits or related instruments. Figures are subject to change based on subsequent RBI updates.
2026-09-02T14:17:07Z