Financial Inflows Facilitation: An Overview of RBI’s Scheme

In the current global economic scenario, the Reserve Bank of India (RBI) has introduced several measures to strengthen the Indian financial system and maintain currency stability. One significant initiative is a special USD-INR swap facility aimed at facilitating international financial transfers through Foreign Currency Non-Resident (FCNR(B)) deposits, External Commercial Borrowings (ECBs), and Overseas Foreign Currency Borrowings (OFCBs). This program was announced on June 8, 2026, with an end date of August 31, 2026, for FCNR(B) deposits, and December 31, 2026, for ECBs and OFCBs. Recent reports from Authorised Dealers indicate that the total transactions under this facility amount to US$72,848 million, distributed as follows: US$65,397 million in FCNR(B) deposits, US$4,860 million in OFCBs, and US$2,591 million in ECBS. This effort by the RBI demonstrates its intention to enhance foreign investment attractiveness, bolster Indian currency reserves, and maintain internal market equilibrium. It also serves as a proactive response to challenging international currency fluctuations faced by India's financial system.