RBI Forex Scheme Attracts USD 40.82 Billion Inflows, Boosts India’s Dollar Reserves

The Reserve Bank of India (RBI) said on Saturday that its concessional foreign exchange swap facility has attracted USD 40.82 billion in foreign currency inflows till July 31, 2026, as the scheme received strong interest from banks and overseas investors seeking to bring funds into India.

The facility, introduced to strengthen India’s external sector, improve forex liquidity and support the balance of payments, has witnessed steady mobilisation since it became operational on June 8, 2026, the central bank said.

According to RBI data received from authorised dealer banks, total inflows under the scheme stood at USD 40.816 billion as of July 31. Foreign Currency Non Resident (Bank) or FCNR(B) deposits accounted for the largest share at USD 36.725 billion, making up nearly 90 per cent of the total mobilisation. Overseas Foreign Currency Borrowings (OFCBs) contributed USD 2.575 billion, while External Commercial Borrowings (ECBs) added USD 1.516 billion.

The inflow momentum has accelerated sharply in recent weeks. The amount mobilised under the facility rose from USD 20.718 billion on July 17 to USD 40.816 billion by July 31, showing strong participation within a short period.

Under the scheme, banks can raise fresh foreign currency deposits and borrowings and enter into concessional swap arrangements with the RBI. The facility provides banks with rupee liquidity while increasing foreign currency availability in the domestic financial system.

The RBI had announced the measures on June 5, 2026, offering concessional swaps for fresh FCNR(B) deposits, OFCBs and ECB inflows. The move was aimed at encouraging foreign currency mobilisation, reducing pressure on forex liquidity and supporting India’s external stability amid global market uncertainties.

The facility for FCNR(B) deposits will remain available until September 30, 2026, while the window for OFCBs and ECBs will continue until December 31, 2026.

The strong response to the scheme is expected to help improve dollar availability in the banking system, strengthen India’s foreign exchange position and provide support to the rupee during periods of global financial volatility.