Shafaqna Business:Banks have raised $17.4 billion under the Reserve Bank of India’s FCNR (B) deposit scheme since June 8, demonstrating significant foreign exchange inflows in response to the Central bank’s efforts to improve India’s balance of payments.India News Updates
According to RBI data, banks raised $17.4 billion through new Foreign Currency Non-Resident (Bank) FCNR (B) between June 8 and July 17, 2026. Additionally, during the same period, banks raised $1.97 billion through Overseas Foreign Currency Borrowings (OFCBs) and another $1.342 billion through External Commercial Borrowings (ECBs).
In order to improve India’s balance of payments and promote foreign capital inflows, the RBI announced the extraordinary measures on June 5.India News Updates
A subsidised swap facility for new FCNR (B) deposits, OFCBs, and ECB inflows was introduced by the Central bank as part of the package. On June 8, the facility opened for business.
The framework states that the swap window for FCNR (B) deposits will last until September 30, 2026, while the OFCB and ECB swap window will last until December 31, 2026.
Since its inception, the programme has had high participation, according to the Central bank.
“The swap facility has seen avid interest and attracted steady forex inflows since June 8, 2026,” the RBI said, citing data received from authorised dealer banks.
Non-resident Indians (NRIs) can lodge foreign currency deposits with Indian banks under the FCNR(B) scheme without bearing exchange rate risk, and banks can convert these foreign currency inflows into rupees on favorable terms due to the RBI’s concessional swap facility.India News Updates
The steps were implemented in an attempt to improve foreign exchange inflows, bolster the resilience of the external sector, and boost India’s balance of payments.
Meanwhile, in less than a month since the facility opened, the RBI’s effort has already drawn over $20.7 billion in total inflows through FCNR (B) deposits, OFCBs, and ECBs, according to the current data.
