RBI's Concessional Forex Swap Facility Mobilises $40.82 Billion by July 31, 2026

RBI's Forex Swap Facility Attracts $136.3 Billion, Reserves at Record $729 Billion, Liquidity Surplus Rises

The RBI's measures to boost capital flows have massively exceeded expectations, with $136.3 billion in inflows through the forex swap facility, pushing forex reserves to a record $729 billion. However, this has created a liquidity surplus of Rs 6.7 lakh crore, complicating inflation management and looming rate hike decisions. This is critical for understanding India's external stability and the RBI's monetary policy challenges.

RBI Reports $72.85 Bn Forex Inflow via FCNR(B), ECB, OFCB Swap Facility by Aug 21, 2026

The RBI has generated $72.85 billion in forex inflows via a special USD-INR swap facility covering FCNR(B) deposits, ECBs, and OFCBs, introduced on June 8, 2026 to shore up reserves amid rupee depreciation caused by FPI outflows and high oil import bills. The scheme is open until August 31, 2026 for deposits and December 31, 2026 for borrowings.

RBI's Forex Swap Window Mobilises $72.85 Bn Inflows via FCNR(B) Deposits; Closed Aug 31

The RBI's special forex swap facility, aimed at boosting forex reserves and supporting the rupee amid pressure from the West Asia conflict and high crude oil prices, attracted $72.85 billion in fresh inflows by August 21. The overwhelming response led to its premature closure on August 31, with FCNR(B) deposits accounting for the bulk. This is a critical forex management tool for exams.

RBI FCNR(B) Swap Window Pushes Forex Reserves to Record $729.33 Billion

India's forex reserves hit an all-time high of $729.33 billion, driven by RBI's concessional FCNR(B) swap window that attracted $65.4 billion in NRI deposits. This strengthens RBI's ability to defend the rupee amid persistent foreign fund outflows and a weakening currency, marking a critical development for macroeconomic stability.

RBI's Forex Swap Facility Draws $136B: $127B via FCNR (B) Deposits, Rupee Relief

RBI's special USD-INR forex swap facility, introduced to counter forex outflows from high oil prices and FPI exits, has mobilized over $136 billion, with FCNR (B) deposits alone contributing $127 billion. This massive inflow is strengthening India's forex reserves and stabilizing the rupee, offering a critical cushion against external sector vulnerabilities.

India's CAD Widens to $4.2 Billion (0.5% of GDP) in Q1FY27: RBI Data Shows Higher Trade Gap

India's current account deficit (CAD) widened to $4.2 billion (0.5% of GDP) in Q1FY27 from $3.4 billion (0.4% of GDP) a year ago, driven by a sharp increase in the merchandise trade deficit. While services exports and remittances provided cushion, net FPI outflows of $9.6 billion and a decline in forex reserves by $8.1 billion signal external sector vulnerability — a key area for UPSC/Banking prelims and mains.

RBI Relaxes FCNR(B) and NRE Deposit Rates, Doubles PROI Equity Limits to Attract $60-70 Billion Inflows

RBI has announced a set of measures to strengthen the rupee by attracting foreign capital, including temporarily relaxing interest rate restrictions on FCNR(B) and NRE deposits, doubling investment limits for PROIs, and exempting FIIs from income tax on G-Secs. These reforms could attract $60-70 billion in foreign inflows, boosting rupee stability and deepening India's bond market.

RBI Holds Repo Rate at 5.25% as CPI Inflation Hits 4.38% in June; Forex Reserves Near $700 Bn

RBI's MPC kept repo rate unchanged at 5.25% for the fourth time, prioritizing growth despite CPI inflation rising to 4.38% in June, above the 4% target. Elevated global crude prices and geopolitical uncertainties are key concerns. The central bank is using tools like dollar-rupee swaps and FCNR(B) deposits to manage liquidity and shore up forex reserves near $700 billion, while the rupee recovers to around ₹95.