RBI Special Swap Facility Mobilizes $40.8 Billion in Inflows

The Reserve Bank of India (RBI) mobilized $40.816 billion in foreign currency inflows between June 8 and July 31, 2026, through a special concessional dollar swap facility. This represents a rapid acceleration from $20.718 billion recorded on July 17. The primary driver was Foreign Currency Non-Resident (Bank) deposits, which contributed $36.725 billion, while overseas foreign currency borrowings and external commercial borrowings added $2.575 billion and $1.516 billion respectively.

The facility was introduced on June 5 to strengthen the balance of payments and stabilize the rupee following a period of reserve depletion caused by Middle East geopolitical tensions. The recovery is reflected in India's foreign exchange reserves, which rose by $6.118 billion to reach $682.354 billion for the week ending July 24, 2026. State Bank of India emerged as the largest mobilizer of these deposits, increasing its balance by over $4.12 billion.

Government and central bank officials stated that these structural measures are intended to attract stable capital and improve economic sentiment. While the FCNR(B) deposit window is available until September 30, 2026, the facility for other borrowings extends to December 31, 2026. To further conserve foreign exchange, Prime Minister Narendra Modi has urged citizens to limit fuel consumption, gold purchases, and overseas travel.