RBI Eases FCNR(B) Dollar Swap Access for Banks

The Reserve Bank of India (RBI) has relaxed its weekly access rule for banks utilizing the concessional dollar-rupee swap facility for Foreign Currency Non-Resident (Bank), or FCNR(B), deposits. This significant change grants banks immediate access to the swap window for transactions exceeding $100 million, rather than waiting for a designated weekly slot.

Previously, banks were assigned specific days to access this swap window, limiting their ability to undertake transactions to once a week. This structure often led to potential delays between mobilizing substantial funds and transferring them to the RBI. The new directive aims to eliminate these delays, providing enhanced flexibility to manage large dollar inflows.

Streamlining Large Dollar Inflow Management

The concessional dollar-rupee swap facility, which was announced on June 5 and operationalized on June 8, enables banks to swap foreign currency raised through FCNR(B) deposits with the RBI at the prevailing spot rate. The central bank commits to providing the currency back at maturity, but at a concessional cost, making the mechanism attractive for foreign currency mobilization.

As of August 21, 2026, the swap facility has successfully attracted total inflows of $72.85 billion. FCNR(B) deposits have been the primary driver of this success, contributing a dominant $65.40 billion, representing nearly 90% of the overall inflows. This highlights the scheme’s effectiveness in drawing foreign currency into the Indian banking system.

Other significant contributions to these inflows include Overseas Foreign Currency Borrowings (OFCBs), which accounted for $4.86 billion. Additionally, External Commercial Borrowings (ECBs) added $2.59 billion to the total mobilized under the facility. The diverse sources underscore the comprehensive nature of the RBI’s foreign currency mobilization strategy.

Adjusted Timelines for Swap Facilities

For FCNR(B) deposits, banks are permitted to continue mobilization under this scheme until August 31. The window for availing swaps with the RBI for these deposits extends slightly longer, until September 11. This timeline represents a minor adjustment from the facility’s original schedule.

In contrast, the swap schemes specifically for ECBs and OFCBs will remain open for a more extended period. These facilities will continue to be accessible until December 31, adhering strictly to their initially announced schedule. These staggered deadlines cater to the distinct operational requirements and policy objectives for each type of foreign currency inflow.