Jaipur: The Reserve Bank of India's (RBI) special measures to attract foreign currency have mobilised $40.816 billion in cumulative inflows as of July 31, 2026, according to the central bank's latest data released on Saturday. The inflows were raised through Foreign Currency Non-Resident (Bank) [FCNR(B)] deposits, Overseas Foreign Currency Borrowings (OFCBs) and External Commercial Borrowings (ECBs) under the RBI's concessional swap facility.
The facility was announced on June 5, 2026, and became operational on June 8, as part of the RBI's efforts to strengthen foreign currency liquidity and support India's external sector amid an uncertain global financial environment.
FCNR(B) Deposits Dominate the Inflows
Data released by the RBI show that FCNR(B) deposits accounted for the overwhelming majority of funds mobilised under the scheme.
Forex Inflows Mobilised as of July 31, 2026
| Instrument | Amount (USD Billion) |
|---|---|
| FCNR(B) Deposits | 36.725 |
| Overseas Foreign Currency Borrowings (OFCBs) | 2.575 |
| External Commercial Borrowings (ECBs) | 1.516 |
| Total | 40.816 |
FCNR(B) deposits accounted for more than 90% of the total inflows, underscoring their role as the primary source of foreign currency mobilisation under the RBI's special facility.
Why Did RBI Introduce the Facility?
The RBI introduced the concessional swap facility at a time when global financial markets were facing elevated interest rates, a stronger US dollar and volatile cross-border capital flows.
The temporary measures were designed to encourage banks to mobilise fresh foreign currency resources by providing concessional swap support for eligible FCNR(B) deposits, OFCBs and ECBs. The initiative aims to improve foreign currency liquidity within the banking system and reinforce India's external financial buffers.
Why the Inflows Matter
The strong inflows are expected to support foreign currency liquidity in the banking system and enhance the RBI's flexibility in managing external sector risks.
A stronger foreign currency position also provides an important buffer against periods of global financial volatility by improving the availability of overseas funding for banks and strengthening India's external financing capacity.
According to RBI data, the $40.816 billion mobilised under the facility highlights robust participation in the central bank's special foreign currency mobilisation measures.
Facility Remains Open Until September and December
The RBI said the concessional swap facility for FCNR(B) deposits will remain available until September 30, 2026.
Meanwhile, the facility covering OFCBs and ECBs will continue until December 31, 2026, allowing eligible banks to continue mobilising foreign currency resources under the scheme.
What Markets Will Watch Next
Market participants will closely monitor the pace of fresh inflows during the remaining tenure of the facility. Investors are also expected to track global interest rate trends, US dollar movements and international capital flows, all of which remain key drivers of foreign currency funding conditions.
Key Takeaways
- RBI's special forex facility has mobilised $40.816 billion in inflows as of July 31, 2026.
- FCNR(B) deposits contributed $36.725 billion, accounting for over 90% of total inflows.
OFCBs attracted $2.575 billion, while ECBs brought in $1.516 billion.The concessional swap facility was announced on June 5 and became operational on June 8, 2026.
The FCNR(B) window remains open until September 30, while OFCB and ECB facilities will continue until December 31, 2026.
Aurelius business view: The RBI's special swap facility has delivered a strong early response, with over $40.8 billion mobilised in less than two months. The dominance of FCNR(B) deposits suggests banks have actively leveraged the scheme to attract overseas foreign currency resources. While the facility has strengthened foreign currency liquidity, its long-term impact will depend on the pace of fresh inflows over the coming months and evolving global financial conditions.
Disclaimber: This article is based on the Reserve Bank of India's official press release dated August 1, 2026, and other publicly available information. It is intended solely for informational purposes and should not be construed as investment or financial advice. Readers should consult a qualified financial advisor before making investment decisions.
