Foreign currency mobilisation under the Reserve Bank of India’s special USD-INR swap facility has reached $72.85 billion, with FCNR(B) deposits accounting for the overwhelming share of funds raised through the scheme. According to data released by the RBI on August 22, authorised dealer banks reported $65.397 billion in inflows through Foreign Currency Non-Resident (Bank) deposits as of August 21. Overseas foreign currency borrowings (OFCBs) contributed another $4.86 billion, while external commercial borrowings (ECBs) brought in $2.591 billion.
The figures highlight strong participation in the facility, particularly through the FCNR(B) route, ahead of the August 31 deadline for mobilising such deposits.
FCNR(B) deposits have emerged as the primary source of foreign currency raised under the RBI’s special facility.
Of the total $72.85 billion mobilised through the three channels, FCNR(B) deposits contributed $65.397 billion. This means the route accounted for nearly 90 per cent of the overall inflows recorded under the scheme as of August 21.
The remaining mobilisation came through OFCBs and ECBs. Together, these two channels contributed approximately $7.45 billion.
The strong response suggests that banks and overseas depositors have made substantial use of the facility, particularly as the deadline for FCNR(B) mobilisation approaches.
RBI’s Special Forex Facility Explained
The RBI introduced the special USD-INR forex swap facility on June 8. The framework was aimed at encouraging foreign currency inflows through FCNR(B) deposits, ECBs and OFCBs.
The initiative is intended to strengthen the availability of foreign exchange within the domestic financial system by facilitating additional foreign currency mobilisation through these channels.
Under the arrangement, the three components have different timelines. The window for FCNR(B) deposits is scheduled to remain available until August 31, while the facility covering ECBs and OFCBs will continue for a longer period, up to December 31.
ECBs And OFCBs Bring In $7.45 Billion
While FCNR(B) deposits have dominated the mobilisation, the other two channels have also contributed significantly.
Data showed that authorised dealer banks reported $4.86 billion through overseas foreign currency borrowings. External commercial borrowings accounted for another $2.591 billion.
Combined, OFCBs and ECBs generated around $7.45 billion in foreign currency inflows under the RBI-backed framework.
The relatively smaller contribution from these channels compared with FCNR(B) deposits nevertheless adds to the overall foreign currency resources mobilised through the special facility.
The latest figures come just days before the FCNR(B) component of the facility is scheduled to close.
The RBI has kept the FCNR(B) mobilisation window open until August 31, giving banks and eligible overseas depositors a limited period to participate further. In contrast, the ECB and OFCB components will remain available until December 31.
