Reserve Bank of India closes FCNR(B) scheme early following high inflows

The Reserve Bank of India (RBI) has closed its special Foreign Currency Non-Resident (FCNR-B) scheme earlier than originally scheduled. While the window was initially set to remain open until September 30, the RBI advanced the closing date to August 31 following a significant surge in foreign exchange inflows.

ICICI Bank reported in an exchange filing that it mobilized approximately $17.88 billion through the FCNR(B) swap facility. Of these funds, $9 billion was utilized for loans provided by international branches and subsidiaries, while $3.63 billion was used for standby letters of credit.

According to central bank data, authorized dealer banks had mobilized $72.848 billion in forex inflows under the scheme as of August 21, with FCNR(B) deposits accounting for $65.397 billion. The Indian government described the initiative as the largest and fastest foreign-currency mobilization exercise in the country's history, surpassing the scale of the 2013 FCNR(B) swap scheme.