PIB TrackerA swap window raised $73 billion in eleven weeks
The RBI's special USD-INR swap facility for FCNR(B) deposits and foreign-currency borrowing has closed a month early, having mobilised nearly three times what the 2013 scheme raised.
What happened
- The RBI's special USD-INR swap facility, launched 8 June 2026, has raised US$73 billion.
- FCNR(B) deposits alone accounted for US$65.40 billion as on 21 August 2026.
- It covers FCNR(B) deposits, OFCBs and ECBs.
- The 2013 FCNR(B) swap raised about US$26 billion over roughly three months.
- The FCNR(B) window closes 31 August instead of 30 September 2026.
For Prelims
- The facility: the RBI's special USD-INR swap for FCNR(B) deposits, OFCBs and ECBs, launched 8 June 2026.
- FCNR(B): Foreign Currency Non-Resident (Bank) deposits — held in foreign currency, so the depositor carries no rupee risk.
- Total raised: US$73 billion as on 21 August 2026, of which FCNR(B) was US$65.40 billion.
- ECB: External Commercial Borrowing — foreign-currency borrowing by Indian entities from non-resident lenders.
- OFCB: Overseas Foreign Currency Borrowing raised by banks abroad.
- The 2013 benchmark: the earlier FCNR(B) swap scheme raised about US$26 billion over roughly three months.
- Closed early: the FCNR(B) window's closure was advanced from 30 September to 31 August 2026.
- On tap: funds raised continuously rather than through a fixed issue window or auction.
For UPSC: A live case of a central bank using a hedging instrument, not an interest rate, to pull in foreign currency. Use it for external sector management, forex reserves and the diaspora as a source of balance-of-payments financing.
What it is NOT: This is not foreign investment — FCNR(B) deposits and external commercial borrowings are liabilities that must be repaid in foreign currency.
For Mains
Syllabus: GS3.1 · GS2.19 · Linkage L2
Anchor
The remarkable fact is not that India raised US$73 billion but that it stopped a month early because it had raised enough.
Substantiation (data)
US$73 billion in under eleven weeks as on 21 August 2026, of which US$65.40 billion was FCNR(B), against about US$26 billion over three months in 2013.
Exemplification
The RBI advanced the FCNR(B) window's closure from 30 September to 31 August 2026 — a fundraising scheme shut down for over-subscription.
Problematisation
Deposits and commercial borrowings are repayable foreign-currency liabilities, and the exchange risk taken off the banks has to sit somewhere on the central bank's book.
Way-forward
Match the maturity profile of these inflows against the redemption calendar so the buffer does not become a bunched repayment three years out.
Position
Diaspora deposits are a good buffer and a poor substitute for durable capital — they arrive when India offers a hedge, not when India offers growth.
Deploys into: Indian economy + diaspora and foreign policy (GS3.1, GS2.19) · external sector management, forex reserves and non-resident deposit mobilisation.
Ministry of Finance · 2026-08-24 · PRID 2302879 · PIB source ↗