RBI Reports $72.85 Billion in Foreign Currency Raised by Banks as of August 21

New Delhi, August 22: The Reserve Bank of India (RBI) announced on Saturday that authorized dealer banks have raised a total of $72.848 billion in foreign currency under the central bank’s special swap facility as of August 21. The largest contribution came from Foreign Currency Non-Resident (Bank) deposits, known as FCNR(B), which accounted for $65.397 billion.

According to the RBI, an additional $7.451 billion in foreign currency was obtained through External Commercial Borrowings (ECB) and Overseas Foreign Currency Borrowings (OFCB) under the special swap facility.

The RBI introduced the special USD-INR swap facility on June 8, 2026, to attract investments through FCNR(B) deposits, ECB, and OFCB. This initiative aims to alleviate pressure on the rupee and enhance foreign currency inflows into the country.

The central bank stated that the FCNR(B) deposit scheme will remain open until August 31, 2026, while the ECB and OFCB facilities will be available until December 31, 2026.

This significant influx of foreign currency comes at a time when Indian banks have raised interest rates to attract FCNR(B) deposits. The RBI recently shortened the scheme’s deadline from September 30 to August 31, citing better-than-expected responses and rapid progress toward foreign currency collection goals.

A report released this week by SBI Research indicated that the target for dollar collection under the FCNR(B) scheme may have already been achieved. The report suggested that an additional inflow of $25 to $30 billion is likely in the remaining days of August, potentially bringing total collections to around $85 billion.

The report also noted that the cost of the swap facility is not a significant barrier. According to SBI Research estimates, the total cost of the scheme could be around $10.5 billion, or approximately 15% of the total funds, which should be viewed in the context of India’s vast foreign currency reserves.

Meanwhile, the country’s foreign currency reserves have also seen rapid growth. According to RBI data released on Friday, the reserves increased by $9.905 billion to reach $716.90 billion for the week ending August 14. This follows a substantial increase of $14.1 billion the previous week, marking the highest level for the current fiscal year.

The substantial foreign currency inflow from the FCNR(B) scheme has not only supported the rupee but also strengthened India’s foreign currency reserves, enhancing the country’s ability to cope with global uncertainties and external shocks.