The Reserve Bank of India (RBI) launched a special US dollar‑rupee forex swap in June 2026. The new facility has pushed foreign currency non‑resident (FCNR) bank deposits up sharply, from $32.56 billion on 5 June to $60.55 billion by 30 July, an increase of 86 percent.
The swap was opened on 8 June for fresh FCNR(B) deposits with tenures of three to five years. Banks can use the window until 16 October for deposits taken between 8 June and 30 September. The goal is to improve India’s balance of payments, raise foreign‑exchange reserves and give relief to the rupee.
When asked in the Lok Sabha, Minister of State for Finance Pankaj Chaudhary said the measure will bring stable foreign‑currency inflows and help ease recent rupee pressure. He added that the impact on reserves and liquidity will depend on how much foreign money is mobilised under the swap.
State Bank of India (SBI) topped the list of banks that used the swap. Its FCNR(B) deposits rose from $9.70 billion on 5 June to $13.82 billion on 30 July, a jump of more than $4.12 billion.
The next four largest banks were HSBC ($6.26 billion), ICICI Bank ($6.06 billion), HDFC Bank ($5.42 billion) and Axis Bank ($4.67 billion). Together, the five banks held a large share of the total $60.55 billion mobilised.
RBI also exempted eligible fresh FCNR(B) deposits from the Cash Reserve Ratio (CRR) and Statutory Liquidity Ratio (SLR) during the swap period. The government said the cost of the facility will depend on the amount mobilised, maturity and forward premia, but a clear risk‑management framework is in place.
The initiative is temporary, designed to strengthen India’s external financing position while protecting against currency and exchange‑rate risks. It is expected to boost liquidity in the banking system and support the rupee in the near term.