The Reserve Bank of India (RBI) introduced a special USD-INR Forex Swap facility on June 8, 2026, covering foreign exchange inflows through FCNR(B) deposits, External Commercial Borrowings (ECBs) and Overseas Foreign Currency Borrowings (OFCBs).
The USD-INR Forex Swap facility is a mechanism introduced by the Reserve Bank of India (RBI) to facilitate foreign currency inflows into India and provide rupee liquidity to banks. Under this arrangement, foreign currency such as US dollars can be exchanged for Indian rupees for a specified period, with an agreement to reverse the transaction later. In simple terms, when banks receive foreign currency through these sources, the forex swap arrangement can help them obtain rupee funds against the foreign currency while the transaction remains subject to the agreed terms. The main purpose of such a facility is to support the availability of foreign exchange and rupee liquidity in the banking system. It can also encourage foreign currency inflows through eligible channels such as FCNR(B) deposits, ECBs and OFCBs.
According to the data reported by Authorised Dealer Banks up to September 18, 2026, total forex inflows under the facility stood at $143.596 billion.
FCNR(B) Deposits Account for Major Inflows
FCNR(B) deposits accounted for the largest share of the inflows. Banks reported $132.980 billion through FCNR(B) deposits. OFCBs contributed $5.320 billion, while ECBs brought in $5.296 billion under the facility.
| Type | Forex Inflow (USD million) |
|---|---|
| FCNR(B) Deposits | 1,32,980 |
| OFCBs | 5,320 |
| ECBs | 5,296 |
| Total | 1,43,596 |
