MONEY
RBI to shut special forex swap facility for FCNR(B) deposits on August 31
- IBJ Bureau
- Aug 15, 2026
The Reserve Bank of India (RBI) will close a discounted forex swap facility for banks a month earlier than planned following robust inflows of more than $50 billion.
Banks will now be allowed to tap the zero-cost hedging facility foroverseas forex deposits by August 31 compared with the earlier date of September 30.
The facility allows banks to hedge with the RBI overseas deposits raised from non-resident Indians (NRIs) at a discounted rate.
The forex swap was a part of a raft of measures announced in June to boost India’s balance of payments.
The decision has been taken “based on the encouraging response to the swap facility for FCNR(B) deposits and the resultant forex inflows”, the central bank has said.
The RBI has added that it has received $52.3 billion via FCNR deposits raised by the banks between June 8 and August 13.
Of that amount, $1.7 billion has been raised through swap facilities for external commercial borrowings (ECB) and $2.8 billion through overseas foreign currency borrowings (OFCB) undertaken by authorised lenders.
The window for these two types of borrowings — ECB and OFCB — is slated to be open until the end of the year, the RBI has said.
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