RBI limits FCNR(B) swap eligibility after $52.3 billion inflows

The Reserve Bank of India limited FCNR(B) deposits eligible for its forex-swap facility to those mobilised by August 31, 2026, the central bank announced on Friday.

FCNR(B) swap eligibility cut to Aug 31

The central bank said the new deadline applies to deposits mobilised only until August 31, 2026, while swaps against those deposits can continue to be availed from the RBI until September 11, 2026, officials said. Data showed $52.3 billion had flowed into FCNR(B) deposits before the change, officials added.

The announcement narrows the pool of foreign-currency term deposits that banks can use to obtain central-bank dollar liquidity under the swap window, officials said. The RBI said the ECB and OFCB windows remain open for eligible flows, while the amended FCNR(B) eligibility is confined to the mobilised-by date.

If banks and depositors mobilise fewer fresh foreign-currency deposits eligible for swaps after August 31, the immediate availability of central-bank dollars via this channel may fall, reducing one potential source of offshore dollar supply into the market. That could make near-term rupee liquidity more sensitive to other flows.

Monitor FCNR(B) deposit mobilisation through August 31, 2026, for the clearest signal of how much swap demand will remain heading into early September.