RBI Ends FCNR(B) Forex Swap Facility August 31, 2026

The Reserve Bank of India (RBI) announced that its special USD-INR forex swap facility for Foreign Currency Non-Resident (Bank) or FCNR(B) deposits will close on August 31, 2026. This decision follows a significant influx of foreign exchange, which effectively strengthened India’s financial system.

Facility’s Impact and Key Figures

The facility garnered a strong response, particularly from FCNR(B) deposits, which formed the bulk of the mobilised funds. These inflows were crucial for India’s domestic financial system, especially during a period of scrutiny over the Indian rupee and external financing conditions.

• As of August 13, 2026, FCNR(B) deposits contributed $52.30 billion.
• The overall scheme generated a total of $56.85 billion in foreign exchange.
• The facility was initially launched on June 8, 2026.

Components and Closure Timeline

The comprehensive scheme included not only FCNR(B) deposits but also Overseas Foreign Currency Borrowings (OFCBs) and External Commercial Borrowings (ECBs). While the FCNR(B) window for new deposits is set to close, other provisions will continue for a longer duration.

• The FCNR(B) window for new deposits closes on August 31, 2026.
• Swaps under the FCNR(B) facility can be availed until September 11, 2026.
• Provisions for ECBs and OFCBs will remain open until December 31, 2026, as originally scheduled.

The success of the FCNR(B) component underscores its importance in providing foreign currency liquidity and stability to the Indian market during a critical economic phase.