Reserve Bank of India’s concessional swap facility has sparked an extraordinary rush of non-resident Indian (NRI) dollar deposits, with Foreign Currency Non-Resident (Bank) [FCNR(B)] balances nearly doubling in less than two months. Introduced on June 8, 2026, the scheme allowed banks to attract overseas deposits with attractive interest rates and subsidised hedging, resulting in inflows that far exceeded expectations.
Between June 5 and July 30, FCNR(B) deposits surged from $32.5 billion to $60.5 billion, marking an 86% jump. Overall inflows under the swap facility, including Overseas Foreign Currency Borrowings and External Commercial Borrowings, reached $40.8 billion by July 31. This rapid mobilisation has already surpassed the $26 billion raised during the 2013 FCNR(B) campaign, with two months still remaining before the scheme closes on September 30.
HSBC emerged as the biggest gainer, expanding its FCNR(B) book 52 times to $6.26 billion. State Bank of India remained the largest contributor, adding $13.8 billion. ICICI Bank tripled deposits to $6 billion, while Standard Chartered moved from zero to $1.85 billion. Public sector banks grew deposits by 53%, private banks by 72%, and foreign banks by nearly 15 times.
The RBI’s initiative is expected to strengthen India’s balance of payments, bolster forex reserves, and ease pressure on the rupee, highlighting the central bank’s success in mobilising global confidence in India’s financial system.
