Banks mobilise USD 127.2 billion in FCNR(B) inflows under forex swap facility, RBI says
Economic Times 1 hr ago·2 Sept 2026, 1:13 pm
The Reserve Bank of India has announced that banks have successfully mobilised USD 127.2 billion in foreign currency deposits under the FCNR(B) scheme using a special forex swap facility. This massive inflow, which surged from USD 52.3 billion in mid-August to USD 127.2 billion by month-end, accounts for over 93 per cent of the total foreign currency raised through the program. This indicates a strong response from the banking sector to the central bank's initiative aimed at boosting foreign exchange reserves.
For investors, this development signals a significant strengthening of India's foreign exchange buffers. A robust reserve base helps stabilise the rupee against external volatility and provides the central bank with greater flexibility to manage monetary policy. The high participation rate suggests that banks are actively managing their liquidity and currency exposures in the current global economic environment.
Investors should monitor the RBI's future communication regarding the exit strategy for this facility. As the inflows are temporary, the central bank will likely outline the timeline for unwinding these positions, which could influence market liquidity and the rupee's movement in the coming months.
Excerpt from Economic Times
Published On Sep 2, 2026 at 06:43 PM IST The Reserve Bank of India ’s special foreign exchange swap facility has drawn USD 136.4 billion of forex inflows between June 08 and August 31, with FCNR(B) deposits emerging as the overwhelming contributor as banks raced to mobilise overseas funds before the window closed.…Read the original at Economic Times
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- Concerns Bank OF India (BANKINDIA).
- Category: Economy.
- AI reads the tone as positive (potentially bullish) for the stock.
- Flagged as a high-impact, market-moving story.
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