RBI forex swap facility attracts $72.85 billion in inflows through August 21
What happened
The Reserve Bank of India’s special USD-INR forex swap facility, introduced on June 8, 2026, attracted $72.85 billion in foreign currency inflows as of August 21, 2026. Data reported by Authorised Dealer Banks shows Foreign Currency Non-Resident deposits accounted for $65.397 billion of the total, followed by Overseas Foreign Currency Borrowings at $4.86 billion and External Commercial Borrowings at $2.591 billion.
Why it matters
The figure underscores how central bank swap facilities can quickly mobilize substantial foreign exchange liquidity through commercial banking channels. Foreign Currency Non-Resident deposits generated nearly 90% of all inflows, indicating that non-resident accounts were the primary driver of capital under the Reserve Bank of India’s structure, while corporate and overseas borrowing mechanisms provided additional foreign exchange.
Bigger picture
The Reserve Bank of India designed staggered deadlines for the facility to manage incoming capital flows over different horizons. The window for Foreign Currency Non-Resident deposits expires on August 31, 2026, whereas the facility for External Commercial Borrowings and Overseas Foreign Currency Borrowings remains open through December 31, 2026, supporting longer-term commercial foreign currency borrowing.
Watch next
Monitor final inflow totals for Foreign Currency Non-Resident deposits following the August 31, 2026 deadline, as well as subsequent reporting on External Commercial Borrowings and Overseas Foreign Currency Borrowings through December 31, 2026.