In a press release in Lok Sabha on Monday, the federal government knowledgeable that the excellent FCNR(B) deposits rose practically 86% to $60,548.72 million as of July 30 from $32,558.50 million on June 5, 2026, when the Reserve financial institution of India introduced the USD-INR foreign exchange swap facility for recent deposits.
Minister of state for finance Pankaj Chaudhary stated the foreign exchange swap facility for recent FCNR (B) deposits is meant to draw secure international foreign money inflows, strengthen India’s stability of funds and assist ease latest pressures on the Indian rupee.
“Because the recent FCNR(B) deposits mobilised by banks will likely be swapped with the RBI, it’s anticipated to extend the international trade reserves in addition to the banking system liquidity after the primary leg of the transaction and the identical will likely be reversed on maturity i.e. the second leg of the transaction,” he stated in a press release.
He famous that the rise in international trade reserves and banking system liquidity will rely upon the full quantity of international foreign money mobilised below the foreign exchange swap facility through the interval.
In accordance with the most recent information from the RBI, its greenback swap facility acquired a complete of $40.8 billion until July 31, of which FCNR-B deposits stood at $36.7 billion.
In a revised estimate, SBI Analysis has projected that the full FCNR(B) deposits might attain $65-70 billion by the tip of the scheme, and together with OFCBs and ECBs, total inflows are anticipated to the touch $80-85 billion.
