RBI Special Dollar Swap Window: Deadline Within 10 Days; Check FCNR(B), ECB and OFCB Routes, Key Dates & More

The Reserve Bank of India's (RBI) special foreign currency swap facility has attracted $72.85 billion in foreign currency mobilisation as of August 21, 2026, providing a significant boost to the central bank's efforts to strengthen dollar liquidity in the financial system.

RBI's Special Forex Swap Facility Raises $72.85 Billion; Here's Why FCNR(B) Deposits Matter

A major share of the funds has come through Foreign Currency Non-Resident (Bank) or FCNR(B), deposits. Banks have mobilised $65.397 billion through this route alone, accounting for nearly 90% of the total amount raised under the special facility.

The latest figures highlight the role of non-resident deposits in bringing foreign currency into India at a time when the rupee and global currency markets remain sensitive to external pressures.

FCNR(B) Deposits Drive RBI's $72.85 Billion Foreign Currency Mobilisation

RBI data shows that FCNR(B) deposits have emerged as the dominant source of foreign currency mobilisation under the special swap arrangement. Banks have raised $65.397 billion through FCNR(B) deposits, while overseas foreign currency borrowings (OFCBs) contributed $4.86 billion. Another $2.591 billion was mobilised through external commercial borrowings (ECBs).

What Are FCNR(B) Deposits?

FCNR(B) stands for Foreign Currency Non-Resident (Bank) account. These are term deposits that non-resident Indians can hold with Indian banks in permitted foreign currencies rather than in Indian rupees.

A key feature is that the deposits remain denominated in a foreign currency. This means the depositor is not exposed to the same exchange-rate risk that applies to a conventional rupee-denominated deposit.

For Indian banks, FCNR(B) deposits provide access to foreign currency funding. Under the RBI's special swap arrangement, banks can mobilise eligible foreign currency and exchange it with the central bank for rupee liquidity.

How Does RBI's Dollar-Rupee Swap Facility Work?

The mechanism is relatively straightforward. Banks first mobilise foreign currency through eligible sources, including FCNR(B) deposits. They can then use the RBI's swap facility to exchange the foreign currency for rupees.

As a result, banks receive rupee liquidity, while the RBI receives the foreign currency. This can strengthen the availability of foreign exchange within the financial system without relying solely on conventional intervention in the spot currency market.

The facility was introduced as part of the RBI's broader efforts to improve foreign currency liquidity and support financial stability amid pressure on the rupee and global financial markets.

RBI's Special Forex Window: FCNR(B) Facility Ends August 31, ECB and OFCB Routes Open Till Dec 31

The central bank introduced the facility to encourage foreign currency inflows through FCNR(B) deposits, external commercial borrowings and overseas foreign currency borrowings.

However, the three routes have different timelines. The FCNR(B) window will close on August 31, 2026, while the facilities for ECBs and OFCBs will remain available until December 31, 2026. This gives banks only a short period to bring in additional FCNR(B) deposits under the special arrangement.

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