RBI’s New Strategy to Attract International Investors

The Reserve Bank of India (RBI) recently introduced a special swap offer for new Foreign Currency Non-Resident (FCNR(B)) deposits, External Commercial Borrowings (ECBs), and Overseas Foreign Currency Borrowing (OFCBs). This initiative was launched on June 5, 2026, becoming effective from June 8, 2026. The program's duration is limited: FCNR(B) until September 30, 2026, and OFCBs/ECBs until December 31, 2026. By the end of July, US$40,816 million had been mobilized under this structure. Analysis of these data reveals significant international investor interest in India during this period. This measure may have important implications for the Indian economy by increasing the attractiveness of capital markets to foreign investors and potentially promoting economic growth. In the current global context, with economic uncertainties in various countries, this initiative can be seen as a proactive approach by India to attract external capital to address domestic macroeconomic challenges. Source: Reserve Bank of India