India mobilizes $73 billion in foreign exchange via RBI swap facility

India has mobilized approximately $73 billion in foreign exchange inflows over an 11-week period through a special dollar-rupee swap facility launched by the Reserve Bank of India (RBI) on June 8. The program, which includes Foreign Currency Non-Resident (FCNR-B) deposits, Overseas Foreign Currency Borrowings, and External Commercial Borrowings, has significantly bolstered India’s external financial buffers.

FCNR(B) deposits were the primary driver, accounting for $65.4 billion of the total. This mobilization has surpassed the scale of the RBI’s 2013 swap program, which raised roughly $26 billion. Due to the rapid and strong response from non-resident Indians and overseas investors, the RBI has moved the closing date for the FCNR(B) swap window forward to August 31, 2026, from its original September 30 deadline.

While the massive inflows have strengthened liquidity and foreign-exchange reserves, the Indian rupee has remained relatively stable within a tight range of 95–96 per US dollar. Analysts note that the RBI has utilized the incoming dollars to build reserves and manage volatility rather than allowing for sharp rupee appreciation. Major institutions like State Bank of India (SBI) expect to capture significant portions of these funds, with SBI Chairman C.S. Setty projecting the bank will garner nearly $10 billion from NRIs and foreign investors.