Swap scheme draws $20.72 billion in inflows

The central bank announced its special foreign-currency swap facility had attracted $20.72 billion in inflows by July 17, 2026; reaction pending. The announcement said most funds arrived through Foreign Currency Non-Resident (FCNR(B)) deposits, with additional money from Overseas Foreign Currency Borrowings and External Commercial Borrowings.

FCNR(B) deposits led inflows

Officials said banks expect a further pickup in FCNR(B) inflows ahead of the scheme's September deadline, citing window timing and deposit-rate differentials. The central bank's move creates a channel for offshore currency to enter domestic markets without immediate spot intervention, which can reduce acute pressure on the foreign-exchange market.

Markets will watch incoming flows and deposit bookings ahead of 30 September 2026, when the window closes, for signs the program is materially easing FX volatility and external financing needs.

Data showed FCNR(B) deposits accounted for the bulk of the $20.72 billion total, reflecting strong appetite among non-resident depositors for rupee-linked placements. Officials said the scheme was designed to bolster the country's balance of payments and to encourage durable foreign capital rather than short-term hot money.