RBI Brings Forward FCNR(B) Swap Deadline

The Reserve Bank of India has brought forward the mobilisation cutoff for its concessional swap facility linked to foreign currency non-resident [FCNR(B)] deposits to August 31, 2026. Under the revised schedule, banks will be able to mobilise overseas foreign-currency deposits that qualify for the special swap only up to this date. This represents a shortening of the original window and effectively accelerates the timeframe within which banks can access the facility for new FCNR(B) inflows.

While the mobilisation window closes earlier, the operational life of existing arrangements continues for some time. Swaps against qualifying FCNR(B) deposits mobilised by August 31, 2026, may still be availed with the RBI until September 11, 2026. This gives banks additional time to execute or roll into swaps for deposits gathered before the cutoff, even as the opportunity to raise new eligible funds under the scheme is curtailed.

As of August 13, 2026, banks had mobilised $52.3 billion through FCNR(B) deposits under the concessional swap framework. These deposits, raised from overseas in foreign currency, are a key component of the RBI’s strategy to attract stable external funding. The scale of the mobilisation reflects substantial participation by non-resident depositors and the banking system in the months since the facility was introduced in June.

Including other eligible channels, total inflows under the RBI’s special swap measures reached about $56.85 billion by August 13, 2026. This broader figure combines FCNR(B) deposits with overseas foreign currency borrowings and external commercial borrowings. Together, these flows have provided a significant boost to India’s foreign-exchange resources and support to the balance of payments.

The RBI stated that the decision to advance the FCNR(B) mobilisation deadline was based on the “encouraging response” to the swap facility and the resultant foreign-exchange inflows. The strong take-up allowed the central bank to achieve substantial inflows over a relatively short period. This in turn reduced the need to keep the concessional window open for as long as initially envisaged.

The concessional USD–INR swap facility, covering FCNR(B) deposits, external commercial borrowings and overseas foreign currency borrowings, was introduced in June with the objective of strengthening India’s balance of payments and encouraging foreign-exchange inflows. By adjusting the timeline in response to realised inflows, the RBI is recalibrating the programme while maintaining access to swaps on deposits already mobilised. The combination of high inflows and a shorter window marks a significant phase in the central bank’s recent efforts to bolster foreign-exchange liquidity.