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RBI’s FCNR-B Drive Draws $65.4 Billion as Total Forex Inflows Near $73 Billion Ahead of August 31 Deadline
New Delhi, August 22, 2026: The Reserve Bank of India’s (RBI) special foreign exchange mobilisation drive has attracted a massive response, with Foreign Currency Non-Resident (Bank) or FCNR-B deposits reaching $65.4 billion by August 21, 2026. According to data reported by authorised dealer banks, total foreign-currency inflows under the RBI’s special forex swap facility stood at $72.85 billion as of August 21. FCNR-B deposits accounted for the overwhelming majority of the inflows, while Overseas Foreign Currency Borrowings (OFCBs) and External Commercial Borrowings (ECBs) contributed the remaining amount. The figures underline the strong response from overseas Indians and international investors ahead of the August 31 deadline for mobilisation of fresh FCNR-B deposits under the special facility. FCNR-B Deposits Cross $65 Billion Of the total $72.85 billion mobilised through the special facility: FCNR-B deposits: $65.40 billion Overseas Foreign Currency Borrowings: $4.86 billion External Commercial Borrowings: $2.59 billion Total inflows: $72.85 billion The latest numbers represent a substantial increase from the $52.3 billion FCNR-B inflow recorded as of August 13, highlighting the rapid pace at which banks have mobilised foreign currency in recent days. Why Did the RBI Introduce the Special Facility? The RBI introduced the special US dollar-rupee forex swap facility in June 2026 to encourage banks to mobilise fresh foreign-currency deposits and strengthen India's external financial position. Under the arrangement, banks could raise fresh three-to-five-year FCNR-B deposits from eligible non-resident customers and swap the foreign currency with the RBI at a concessional rate. The mechanism effectively reduced the cost of hedging for banks and encouraged them to offer more attractive rates to depositors. RBI Brings Forward August 31 Deadline The RBI had initially planned to keep the FCNR-B swap facility open until September 30, 2026. However, after witnessing much stronger-than-expected foreign currency inflows, the central bank announced that fresh FCNR-B deposits would be eligible under the facility only if mobilised by August 31, 2026. Swaps against eligible FCNR-B deposits can still be undertaken with the RBI until September 11, 2026. The facilities linked to ECBs and OFCBs, meanwhile, remain available until December 31, 2026. Banks Race to Attract More NRI Deposits The approaching deadline has intensified competition among Indian banks for FCNR-B deposits. Several private-sector lenders have increased deposit rates and stepped up their outreach to NRI customers. According to reports, Axis Bank and Federal Bank have raised FCNR-B deposit rates to as high as 6.4% for certain tenures and deposit categories. Banks are also using overseas fundraising, faster processing and targeted campaigns to attract additional foreign-currency deposits before the deadline. What Does the $72.85 Billion Inflow Mean for India? The large inflow provides India with an important boost to its foreign-exchange position at a time when the rupee and external financing conditions remain under close watch. India's foreign exchange reserves had already risen significantly amid sustained capital inflows. Reuters reported that reserves reached $716.9 billion as of August 14, a six-month high, with the RBI's foreign-currency assets accounting for much of the weekly increase. The FCNR-B mobilisation can therefore provide the central bank with additional foreign-currency resources and strengthen its ability to manage external-sector pressures. Why Are NRIs Responding So Strongly? The special facility has made FCNR-B deposits more attractive by reducing the cost for banks of managing foreign-exchange risk. For NRIs and eligible overseas customers, FCNR-B accounts allow deposits to be maintained in specified foreign currencies rather than being directly converted into rupees. RBI information notes that FCNR(B) accounts can be opened by NRIs and eligible persons of Indian origin/OCI categories as term deposits in freely convertible currencies. The combination of competitive interest rates and the limited-period nature of the special facility appears to have encouraged significant mobilisation. Could Inflows Rise Further? The latest $65.4-billion FCNR-B figure has already surpassed earlier expectations. SBI Research had previously estimated that FCNR-B mobilisation could reach around $60 billion-$65 billion, with total inflows from FCNR-B deposits, OFCBs and ECBs potentially reaching $80 billion-$85 billion. With the FCNR-B window closing on August 31, banks still have a limited period to mobilise additional deposits. Key Numbers at a Glance Indicator Latest figure FCNR-B deposits $65.40 billion OFCB inflows $4.86 billion ECB inflows $2.59 billion Total forex inflows $72.85 billion Data as of August 21, 2026 FCNR-B mobilisation deadline August 31, 2026 Eligible FCNR-B swaps with RBI until September 11, 2026 ECB/OFCB facility available until December 31, 2026 What Happens After August 31? The special window for mobilising new FCNR-B deposits will close on August 31. However, eligible deposits mobilised under the facility can still be swapped with the RBI until September 11. The ECB and OFCB components of the broader forex facility will continue until the end of December. For the RBI, the extraordinary response means that the central bank has already achieved a significant part of its objective of attracting stable foreign-currency resources. Bottom Line The RBI's special forex mobilisation programme has turned into a major dollar-raising exercise, with $65.4 billion flowing through FCNR-B deposits and total inflows reaching $72.85 billion by August 21. With the August 31 deadline approaching, the final tally could rise further. The scale of the inflows highlights strong overseas demand for Indian banking instruments and provides an additional cushion for India's foreign-exchange position.
New Delhi, August 22, 2026: The Reserve Bank of India’s (RBI) special foreign exchange mobilisation drive has attracted a massive response, with Foreign Currency Non-Resident (Bank) or FCNR-B deposits reaching $65.4 billion by August 21, 2026.
According to data reported by authorised dealer banks, total foreign-currency inflows under the RBI’s special forex swap facility stood at $72.85 billion as of August 21. FCNR-B deposits accounted for the overwhelming majority of the inflows, while Overseas Foreign Currency Borrowings (OFCBs) and External Commercial Borrowings (ECBs) contributed the remaining amount.
The figures underline the strong response from overseas Indians and international investors ahead of the August 31 deadline for mobilisation of fresh FCNR-B deposits under the special facility.
FCNR-B Deposits Cross $65 Billion
Of the total $72.85 billion mobilised through the special facility:
FCNR-B deposits: $65.40 billion
Overseas Foreign Currency Borrowings: $4.86 billion
External Commercial Borrowings: $2.59 billion
Total inflows: $72.85 billion
The latest numbers represent a substantial increase from the $52.3 billion FCNR-B inflow recorded as of August 13, highlighting the rapid pace at which banks have mobilised foreign currency in recent days.
Why Did the RBI Introduce the Special Facility?
The RBI introduced the special US dollar-rupee forex swap facility in June 2026 to encourage banks to mobilise fresh foreign-currency deposits and strengthen India's external financial position.
Under the arrangement, banks could raise fresh three-to-five-year FCNR-B deposits from eligible non-resident customers and swap the foreign currency with the RBI at a concessional rate. The mechanism effectively reduced the cost of hedging for banks and encouraged them to offer more attractive rates to depositors.
RBI Brings Forward August 31 Deadline
The RBI had initially planned to keep the FCNR-B swap facility open until September 30, 2026.
However, after witnessing much stronger-than-expected foreign currency inflows, the central bank announced that fresh FCNR-B deposits would be eligible under the facility only if mobilised by August 31, 2026. Swaps against eligible FCNR-B deposits can still be undertaken with the RBI until September 11, 2026.
The facilities linked to ECBs and OFCBs, meanwhile, remain available until December 31, 2026.
Banks Race to Attract More NRI Deposits
The approaching deadline has intensified competition among Indian banks for FCNR-B deposits.
Several private-sector lenders have increased deposit rates and stepped up their outreach to NRI customers. According to reports, Axis Bank and Federal Bank have raised FCNR-B deposit rates to as high as 6.4% for certain tenures and deposit categories.
Banks are also using overseas fundraising, faster processing and targeted campaigns to attract additional foreign-currency deposits before the deadline.
What Does the $72.85 Billion Inflow Mean for India?
The large inflow provides India with an important boost to its foreign-exchange position at a time when the rupee and external financing conditions remain under close watch.
India's foreign exchange reserves had already risen significantly amid sustained capital inflows. Reuters reported that reserves reached $716.9 billion as of August 14, a six-month high, with the RBI's foreign-currency assets accounting for much of the weekly increase.
The FCNR-B mobilisation can therefore provide the central bank with additional foreign-currency resources and strengthen its ability to manage external-sector pressures.
Why Are NRIs Responding So Strongly?
The special facility has made FCNR-B deposits more attractive by reducing the cost for banks of managing foreign-exchange risk.
For NRIs and eligible overseas customers, FCNR-B accounts allow deposits to be maintained in specified foreign currencies rather than being directly converted into rupees. RBI information notes that FCNR(B) accounts can be opened by NRIs and eligible persons of Indian origin/OCI categories as term deposits in freely convertible currencies.
The combination of competitive interest rates and the limited-period nature of the special facility appears to have encouraged significant mobilisation.
Could Inflows Rise Further?
The latest $65.4-billion FCNR-B figure has already surpassed earlier expectations.
SBI Research had previously estimated that FCNR-B mobilisation could reach around $60 billion-$65 billion, with total inflows from FCNR-B deposits, OFCBs and ECBs potentially reaching $80 billion-$85 billion.
With the FCNR-B window closing on August 31, banks still have a limited period to mobilise additional deposits.
Key Numbers at a Glance
Indicator Latest figure
FCNR-B deposits $65.40 billion
OFCB inflows $4.86 billion
ECB inflows $2.59 billion
Total forex inflows $72.85 billion
Data as of August 21, 2026
FCNR-B mobilisation deadline August 31, 2026
Eligible FCNR-B swaps with RBI until September 11, 2026
ECB/OFCB facility available until December 31, 2026
What Happens After August 31?
The special window for mobilising new FCNR-B deposits will close on August 31. However, eligible deposits mobilised under the facility can still be swapped with the RBI until September 11.
The ECB and OFCB components of the broader forex facility will continue until the end of December.
For the RBI, the extraordinary response means that the central bank has already achieved a significant part of its objective of attracting stable foreign-currency resources.
Bottom Line
The RBI's special forex mobilisation programme has turned into a major dollar-raising exercise, with $65.4 billion flowing through FCNR-B deposits and total inflows reaching $72.85 billion by August 21.
With the August 31 deadline approaching, the final tally could rise further. The scale of the inflows highlights strong overseas demand for Indian banking instruments and provides an additional cushion for India's foreign-exchange position.
According to data reported by authorised dealer banks, total foreign-currency inflows under the RBI’s special forex swap facility stood at $72.85 billion as of August 21. FCNR-B deposits accounted for the overwhelming majority of the inflows, while Overseas Foreign Currency Borrowings (OFCBs) and External Commercial Borrowings (ECBs) contributed the remaining amount.
The figures underline the strong response from overseas Indians and international investors ahead of the August 31 deadline for mobilisation of fresh FCNR-B deposits under the special facility.
FCNR-B Deposits Cross $65 Billion
Of the total $72.85 billion mobilised through the special facility:
FCNR-B deposits: $65.40 billion
Overseas Foreign Currency Borrowings: $4.86 billion
External Commercial Borrowings: $2.59 billion
Total inflows: $72.85 billion
The latest numbers represent a substantial increase from the $52.3 billion FCNR-B inflow recorded as of August 13, highlighting the rapid pace at which banks have mobilised foreign currency in recent days.
Why Did the RBI Introduce the Special Facility?
The RBI introduced the special US dollar-rupee forex swap facility in June 2026 to encourage banks to mobilise fresh foreign-currency deposits and strengthen India's external financial position.
Under the arrangement, banks could raise fresh three-to-five-year FCNR-B deposits from eligible non-resident customers and swap the foreign currency with the RBI at a concessional rate. The mechanism effectively reduced the cost of hedging for banks and encouraged them to offer more attractive rates to depositors.
RBI Brings Forward August 31 Deadline
The RBI had initially planned to keep the FCNR-B swap facility open until September 30, 2026.
However, after witnessing much stronger-than-expected foreign currency inflows, the central bank announced that fresh FCNR-B deposits would be eligible under the facility only if mobilised by August 31, 2026. Swaps against eligible FCNR-B deposits can still be undertaken with the RBI until September 11, 2026.
The facilities linked to ECBs and OFCBs, meanwhile, remain available until December 31, 2026.
Banks Race to Attract More NRI Deposits
The approaching deadline has intensified competition among Indian banks for FCNR-B deposits.
Several private-sector lenders have increased deposit rates and stepped up their outreach to NRI customers. According to reports, Axis Bank and Federal Bank have raised FCNR-B deposit rates to as high as 6.4% for certain tenures and deposit categories.
Banks are also using overseas fundraising, faster processing and targeted campaigns to attract additional foreign-currency deposits before the deadline.
What Does the $72.85 Billion Inflow Mean for India?
The large inflow provides India with an important boost to its foreign-exchange position at a time when the rupee and external financing conditions remain under close watch.
India's foreign exchange reserves had already risen significantly amid sustained capital inflows. Reuters reported that reserves reached $716.9 billion as of August 14, a six-month high, with the RBI's foreign-currency assets accounting for much of the weekly increase.
The FCNR-B mobilisation can therefore provide the central bank with additional foreign-currency resources and strengthen its ability to manage external-sector pressures.
Why Are NRIs Responding So Strongly?
The special facility has made FCNR-B deposits more attractive by reducing the cost for banks of managing foreign-exchange risk.
For NRIs and eligible overseas customers, FCNR-B accounts allow deposits to be maintained in specified foreign currencies rather than being directly converted into rupees. RBI information notes that FCNR(B) accounts can be opened by NRIs and eligible persons of Indian origin/OCI categories as term deposits in freely convertible currencies.
The combination of competitive interest rates and the limited-period nature of the special facility appears to have encouraged significant mobilisation.
Could Inflows Rise Further?
The latest $65.4-billion FCNR-B figure has already surpassed earlier expectations.
SBI Research had previously estimated that FCNR-B mobilisation could reach around $60 billion-$65 billion, with total inflows from FCNR-B deposits, OFCBs and ECBs potentially reaching $80 billion-$85 billion.
With the FCNR-B window closing on August 31, banks still have a limited period to mobilise additional deposits.
Key Numbers at a Glance
Indicator Latest figure
FCNR-B deposits $65.40 billion
OFCB inflows $4.86 billion
ECB inflows $2.59 billion
Total forex inflows $72.85 billion
Data as of August 21, 2026
FCNR-B mobilisation deadline August 31, 2026
Eligible FCNR-B swaps with RBI until September 11, 2026
ECB/OFCB facility available until December 31, 2026
What Happens After August 31?
The special window for mobilising new FCNR-B deposits will close on August 31. However, eligible deposits mobilised under the facility can still be swapped with the RBI until September 11.
The ECB and OFCB components of the broader forex facility will continue until the end of December.
For the RBI, the extraordinary response means that the central bank has already achieved a significant part of its objective of attracting stable foreign-currency resources.
Bottom Line
The RBI's special forex mobilisation programme has turned into a major dollar-raising exercise, with $65.4 billion flowing through FCNR-B deposits and total inflows reaching $72.85 billion by August 21.
With the August 31 deadline approaching, the final tally could rise further. The scale of the inflows highlights strong overseas demand for Indian banking instruments and provides an additional cushion for India's foreign-exchange position.
Kamal Singh
Experienced journalist and writer
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