RBI to prematurely end FCNR(B) swap facility, deposits allowed till Aug 31

Mumbai, Aug 14, 2026

According to data by the RBI, forex inflows under the facility stood at $56.85 billion as on August 13, 2026

The Reserve Bank of India has decided to close its swap facility for FCNR(B) deposits ahead of schedule, citing an encouraging response to the scheme and the resultant foreign exchange inflows.

In a press release, the RBI said the swap facility will now be available only for FCNR(B) deposits mobilised till August 31, 2026, and banks can avail of swaps under this facility with the central bank till September 11, 2026.

The scheme for external commercial borrowings (ECBs) and overseas foreign currency borrowings (OFCBs), however, will continue to remain open till December 31, 2026, as previously announced.

“Based on the encouraging response to the Swap Facility for FCNR(B) deposits and the resultant forex inflows, it has been decided that the Swap facility for FCNR(B) deposits will be available only for deposits mobilized till August 31, 2026. The Swaps under this facility i.e. FCNR(B) deposits, may be availed with RBI till September 11, 2026. The Scheme for ECBs and OFCBs will continue to be open till December 31, 2026, as hitherto,” the RBI said in a release on Friday.

As per the original schedule, the scheme was open for deposit mobilisation until September 30, 2026, with banks permitted to avail of the swap with the RBI until October 16, 2026.

According to data from the RBI, forex inflows under the facility stood at $56.85 billion as on August 13, 2026. Of this, FCNR(B) deposits accounted for the bulk at $52.3 billion, followed by OFCBs at $2.81 billion and ECBs at $1.74 billion.

The FCNR(B) swap facility was originally announced on June 5 and operationalised on June 8, allowing banks to mobilise fresh FCNR(B) deposits with a tenor of three to five years and swap the dollar inflows with the RBI at the prevailing spot rate.

[The Business Standard]