RBI's special swap window pulls in $40.8 billion of foreign funds by July end
Foreign inflows through the Reserve Bank of India's concessional swap facility surged to $40.8 billion by July 31, nearly doubling the amount recorded two weeks earlier.
The Reserve Bank of India reported that its special concessional swap facility attracted $40.816 billion in foreign currency inflows by July 31, almost twice the $20.718 billion recorded on July 17. FCNR(B) deposits were the dominant source, delivering $36.725 billion and accounting for about nine-tenths of the total inflows. Overseas foreign currency borrowings added $2.575 billion, while external commercial borrowings contributed $1.516 billion.
Between mid-July and the end of the month, FCNR(B) deposits rose by $19.319 billion, driving the overall surge. The scheme, announced on June 5 and operational from June 8, is intended to bolster India's balance of payments and foreign-exchange liquidity. It will remain available for new FCNR(B) deposits until September 30, with the OFCB and ECB components extending to December 31, 2026.
Why it matters
The influx strengthens India's foreign-exchange reserves and supports its balance of payments amid global market volatility.
In this story