The Reserve Bank of India (RBI) officially revised its total foreign currency non-resident deposit inflows upward to $133 billion following a surge in non-resident Indian (NRI) financial remittances. The central bank's updated financial metrics reflect strong foreign exchange accumulation and robust confidence among overseas Indian investors across national banking channels. Senior monetary policy officials noted that foreign currency inflows have helped reinforce India's sovereign foreign exchange reserves, providing necessary liquidity and stabilizing the domestic currency against international market fluctuations. Financial analysts emphasize that expanding NRI deposit pools enhances capital availability for domestic commercial banks, enabling expanded credit growth for industrial manufacturing, infrastructure projects, and corporate expansion plans while maintaining overall banking sector resilience.

Central Bank Revises Special Forex Swap Mobilization Figures

In an official statistical update released by Authorized Dealer banks, the Reserve Bank of India (RBI) revised total capital mobilised under its temporary Foreign Currency Non-Resident [FCNR(B)] special deposit facility upward to $132.98 billion. The final tally surpasses the central bank's initial provisional estimate of $127.22 billion released earlier this month. Combined with external commercial borrowings (ECBs) and overseas foreign currency borrowings (OFCBs), total capital inflows processed through the RBI's special forex swap mechanism reached $143.596 billion as of September 18.

Overview: RBI Special Forex Swap Facility Collection Breakdown

Financial Stream / Scheme ComponentFinal Mobilised Volume & Official Parameters
FCNR(B) Deposit Inflows$132.980 Billion (Upwardly revised from $127.226 Billion)
Overseas Foreign Currency Borrowings (OFCB)$5.320 Billion
External Commercial Borrowings (ECB)$5.296 Billion
Total Scheme Inflows$143.596 Billion (5x higher than 2013 scheme)
FCNR(B) Operational WindowJune 8 – August 31, 2026 (Closed 1 month ahead of schedule)
ECB / OFCB Window ExpiryOpen through December 31, 2026

Targeted Swap Facility Yields Unprecedented Capital Inflows

Launched on June 8, 2026, to bolster balance-of-payments resilience, defend the Indian Rupee, and build up foreign exchange reserves, the special facility provided banks with zero-cost currency hedging and temporary exemptions from Cash Reserve Ratio (CRR) and Statutory Liquidity Ratio (SLR) mandates on eligible three-to-five-year FCNR(B) deposits. The regulatory incentives allowed Indian commercial banks to offer high, tax-exempt annual yields of up to 7% on foreign currency deposits.

The response from the global Indian diaspora exceeded central bank expectations. The $132.98 billion in FCNR(B) deposits collected over less than three months represents more than five times the $26 billion raised during the RBI's historic 2013 swap window. Overwhelming demand led the RBI to close the FCNR(B) deposit window on August 31—a full month ahead of its original September 30 deadline—after determining that its strategic reserve goals were fulfilled.

System Liquidity Dynamics and Ongoing Borrowing Windows

While the window for fresh FCNR(B) deposits remains closed, the RBI's concessional forex swap facility for corporate External Commercial Borrowings (ECBs) and Overseas Foreign Currency Borrowings (OFCBs) will remain open through December 31, 2026, as originally planned.

The huge foreign currency inflows have significantly bolstered India's foreign exchange reserves—which recently crossed a record $785 billion. Concurrently, the central bank is actively deploying open market operations and liquidity absorption measures to manage the substantial rupee surplus created as dollars were swapped into the domestic banking system.