RBI's forex swap facility reach $72.85 billion as FCNR(B) deposits tops USD 65 Billion
&imwidth=600&imheight=450&format=webp&quality=medium "RBI's forex swap facility reach $72.85 billion as FCNR(B) deposits tops USD 65 Billion")
Representative image. Photograph: (Wikimedia Commons)
The apex bank launched the special USD-INR forex swap facility on June 8 to boost foreign currency inflows through FCNR(B) deposits, ECBs and OFCBs to support foreign currency inflows through these channels and strengthen the availability of foreign exchange in the domestic financial system.
Forex inflows under the special USD-INR swap facility of the Reserve Bank of India have totalled USD 72.85 billion as of August 21, with FCNR(B) deposits making up the largest share under the scheme, according to the central bank data released on Saturday.
The RBI confirmed that authorised dealer banks reported USD 65.397 billion in inflows via Foreign Currency Non-Resident (Bank) [FCNR(B)] deposits under the scheme through August 21. Overseas foreign currency borrowings (OFCBs) contributed USD 4.86 billion, while external commercial borrowings (ECBs) added USD 2.591 billion.
The apex bank launched the special USD-INR forex swap facility on June 8 to boost foreign currency inflows through FCNR(B) deposits, ECBs and OFCBs. The facility was designed with the aim of providing support for foreign currency inflows through these channels and strengthening the availability of foreign exchange in the domestic financial system.
The RBI confirmed that the window for FCNR(B) deposits under the scheme remains open until August 31, while the facility for ECBs and OFCBs will remain available until December 31.
FCNR(B) deposits as source of foreign currency mobilisation
The latest data indicates that FCNR(B) deposits have surfaced as a powerful source of foreign currency mobilisation under the facility. It accounts for approximately 90 per cent of the total inflows, and the combined inflows from OFCBs and ECBs stood at around USD 7.45 billion.
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The robust fundraising comes as the FCNR(B) deposit deadline approaches at the end of August, underscoring the strong uptake by banks and overseas depositors of the RBI's special forex facility.
The central bank had previously said the FCNR(B) window would shut on August 31, while the ECB and OFCB components would run for a longer stretch. The latest figures offer an update on how much authorised dealer banks have utilised the facility as of August 21.
The USD 72.85 billion raised across the three components marks a sizeable mobilisation of foreign currency through the RBI-backed scheme, with FCNR(B) deposits continuing to drive the bulk of it.
