The facility, introduced on June 8, covers inflows through FCNR(B) deposits, external commercial borrowings (ECBs) and overseas foreign-currency borrowings (OFCBs).
Of the massive $136.377 billion mobilised through August 31, FCNR(B) deposits accounted for the lion’s share at $127.226 billion. OFCBs brought in $5.260 billion, while ECBs contributed $3.891 billion.
The RBI said the figures are provisional and subject to final reporting, accounting and reconciliation.
FCNR(B) deposits drive bulk of inflows
The strong response to the facility has been led overwhelmingly by FCNR(B) deposits, which allow non-resident Indians to hold foreign-currency deposits with Indian banks without taking on exchange-rate risk.
The scale of mobilisation had already picked up sharply in the final days of the FCNR(B) window. The Finance Ministry had said on August 24 that the facility had attracted $73 billion as of August 21, including $65.4 billion through FCNR(B) deposits.
The government had earlier said the response had surpassed the $26 billion mobilised through the RBI’s 2013 FCNR(B) swap scheme.
The strong inflows also prompted the RBI to advance the closure of the FCNR(B) window to August 31 from September 30, after the facility met its objective ahead of schedule.Also Read: RBI data: 1-year MCLR rises in August; lending and deposit rates ease in July
The Finance Ministry has said the inflows will help strengthen India’s external buffers, while attributing the strong response to confidence among the Indian diaspora in the country’s banking system and economy.
ECB, OFCB windows remain open
While the FCNR(B) window closed on August 31, the facility covering ECBs and OFCBs remains open until December 31, 2026, at present.
This means the $136.377 billion reported by the RBI is a provisional snapshot rather than the final amount that could be mobilised under the overall forex swap facility.
The government has described the scheme as an important source of foreign-currency inflows at a time when strengthening external buffers remains a key priority.
