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The Reserve Bank of India's (RBI) special concessional swap facility for Foreign Currency Non-Resident (Bank) [FCNR(B)] deposits has led to a sharp surge in overseas foreign currency inflows, with outstanding FCNR(B) deposits rising by nearly 86 per cent in less than two months.
According to RBI's latest bank-wise data, outstanding FCNR(B) deposits increased from USD 32.56 billion as on June 5, 2026, the day the central bank announced the special measures, to USD 60.55 billion by July 30, 2026. This translates into an increase of nearly USD 28 billion in less than two months. The special facility was announced on June 5 and operationalised on June 8 with the objective of strengthening India's balance of payments and encouraging foreign currency inflows amid global uncertainties. Under the package, the RBI introduced a concessional swap facility for fresh FCNR(B) deposits mobilised by banks. The facility is available until September 30, 2026, while similar concessional measures for Overseas Foreign Currency Borrowings (OFCBs) and External Commercial Borrowings (ECBs) will remain in force until December 31, 2026. The latest data indicates a strong response from banks and non-resident Indians (NRIs), suggesting that the RBI's incentives have significantly boosted foreign currency deposits. Among individual lenders, State Bank of India (SBI) remained the largest mobiliser, with outstanding FCNR(B) deposits rising from USD 9.70 billion on June 5 to USD 13.82 billion by July 30. Among private sector banks, ICICI Bank recorded one of the sharpest increases, with FCNR(B) deposits climbing from USD 2.37 billion to USD 6.06 billion during the period. HDFC Bank saw its outstanding deposits increase from USD 4.02 billion to USD 5.42 billion, while Axis Bank mobilised USD 4.67 billion, up from USD 3.08 billion. Foreign banks also witnessed a significant rise. HSBC's FCNR(B) deposits jumped from USD 120 million to USD 6.26 billion, while Standard Chartered Bank mobilised USD 1.86 billion after having no outstanding FCNR(B) deposits at the beginning of the period. The RBI earlier said the measures were aimed at strengthening India's external sector by attracting overseas foreign currency inflows and improving foreign exchange liquidity. The FCNR(B) swap window remains open until the end of September, indicating that foreign currency inflows under the scheme could increase further in the coming weeks. (ANI)
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