RBI's Foreign Currency Inflows Through FCNR(B) Deposits Attracts $65 Billion Ahead of Aug 31 Deadline for RBI's Concessional Swap Window
The Reserve Bank of India’s measures to boost foreign currency inflows have attracted $65 billion ahead of the August 31 deadline for its concessional swap window, taking total inflows to $72 billion. The RBI introduced a dollar-rupee forex swap facility for fresh FCNR-B deposits with three- to five-year tenors. ECB inflows reached $2.6 billion, while OFCBs added $4.9 billion, strengthening India’s external financing position amid global uncertainty.
- Republic Business
- 1 min read
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The Reserve Bank of India's measures to increase foreign currency inflows have attracted $65 billion ahead of the August 31 deadline for the RBI's concessional swap window. This has increased the total foreign currency inflows to $72 billion, RBI said in a notification on Saturday.
The RBI has introduced a US dollar-rupee forex swap facility for fresh Foreign Currency Non-Resident deposits mobilized by banks, applicable to tenors of three to five years. The move is part of India’s strategy to attract longer-duration foreign currency inflows and strengthen its external financing position amid global uncertainty.
Foreign currency inflows through external commercial borrowings (ECBs) have reached $2.6 billion, while overseas foreign currency borrowings (OFCBs) have contributed another $4.9 billion, RBI said.
The concessional swap window for FCNR-B deposits was initially scheduled to remain open until the end of September. However, the RBI last week advanced the deadline to August 31, citing an encouraging response from market participants.
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The decision to advance the deadline followed consultations with policymakers and was part of the RBI’s broader external sector management strategy.
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The concessional swap facility is a policy intervention aimed at improving foreign exchange reserves and supporting overall financial stability during periods of global uncertainty.