RBI Attracts $20.7 Billion in Foreign Currency Inflows

The Reserve Bank of India attracted $20.718 billion in total foreign currency inflows between June 8 and July 17, 2026, using a limited-period concessional swap facility. Of this total, $17.406 billion came from fresh Foreign Currency Non-Resident (Bank) deposits, while overseas foreign currency borrowings and external commercial borrowings contributed $1.97 billion and $1.342 billion, respectively.

Launched to shore up foreign exchange reserves and stabilize the rupee against pressures from rising crude oil prices and conflict in West Asia, the scheme allows banks to raise three-to-five-year deposits. The central bank is subsidizing these inflows by bearing the full hedging costs. The window for FCNR(B) deposits remains open until September 30, 2026, while the window for external borrowings extends to December 31, 2026.

While public sector banks like Punjab National Bank and State Bank of India reported significant inflows, India's largest private sector lenders—including HDFC Bank, ICICI Bank, and Axis Bank—have declined to disclose specific amounts gathered. Mobilization has faced hurdles due to operational uncertainties and taxation concerns in the UK and US, as well as restrictions from the UAE central bank. Despite these challenges, industry leaders expect total inflows to potentially exceed $50 billion by the scheme's closure.