In a statement in Lok Sabha on Monday, the government informed that the outstanding FCNR(B) deposits rose nearly 86% to $60,548.72 million as of July 30 from $32,558.50 million on June 5, 2026, when the Reserve bank of India announced the USD-INR forex swap facility for fresh deposits.
Minister of state for finance Pankaj Chaudhary said the forex swap facility for fresh FCNR (B) deposits is intended to attract stable foreign currency inflows, strengthen India’s balance of payments and help ease recent pressures on the Indian rupee.
“As the fresh FCNR(B) deposits mobilised by banks will be swapped with the RBI, it is expected to increase the foreign exchange reserves as well as the banking system liquidity after the first leg of the transaction and the same will be reversed on maturity i.e. the second leg of the transaction,” he said in a statement.
He noted that the increase in foreign exchange reserves and banking system liquidity will depend on the total amount of foreign currency mobilised under the forex swap facility during the period.
According to the latest data from the RBI, its dollar swap facility received a total of $40.8 billion till July 31, of which FCNR-B deposits stood at $36.7 billion.
In a revised estimate, SBI Research has projected that the total FCNR(B) deposits could reach $65-70 billion by the end of the scheme, and including OFCBs and ECBs, overall inflows are expected to touch $80-85 billion.