India Watch: RBI update shows a strong start to Forex swap window

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India Watch: RBI update shows a strong start to Forex swap window

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India Watch

RBI update shows a strong start to Forex

swap window

Economic Analysis

Over USD20bn mobilized since forex swap window started 21 July 2026

Providing the first update since launching the scheme in early June, the Reserve Bank of GEM Economics

India today issued a press release showing that over USD20bn (USD20.72bn) as of 17 Asia | India

July, roughly 6 weeks (40 days operational) after the program was launched. This number

is mostly driven by mobilization of FCNR (B) deposits, which have contributed the lion’s RahulIndia &BajoriaASEAN Economist

share at USD17.4bn, while the remaining USD3.3bn has been garnered via external BofAS India

commercial borrowings. The scheme is running till end of September 2026 and +91rahul.bajoria@bofa.com22 6632 3095

introduced a swap window for foreign currency nonresident deposits raised by banks Smriti Mehra

(FCNR (B)), along with removal of withholding and capital gains taxes on bonds issued by India Economist

BofAS India

the government of India, and ECB issuances by banks. The RBI has another eleven weeks +91 22 6632 8314

until 30 September to mobilize more funds from the FCNR (B) scheme, while the ECB smriti.mehra@bofa.com

swap scheme runs until end of 2026.

2026 scheme take up stronger than 2013 so far Glossary

Today’s data release puts to rest market concern of the scheme having not worked so

far, and shows that relative to 2013, the mobilization of funds has been much stronger FCNR(B): Foreign Currency Non-Resident

in the initial period. Indeed, relative to the USD20.7bn accumulated in the first six weeks (Bank) deposit

of the program in 2026, the 2013 program in its first seven weeks or so had mobilized RBI: Reserve Bank of India