The Reserve Bank of India (RBI) has shortened the window for mobilising FCNR(B) deposits under its special USD-INR forex swap facility to August 31, citing the encouraging response and strong forex inflows generated through the scheme.Under the revised timeline, FCNR(B) deposits mobilised until August 31, 2026, can be swapped with the RBI until September 11, 2026.The central bank had earlier said the facility would remain open until October 16 for FCNR(B) deposits mobilised between the date of the circular and September 30.The RBI introduced the special USD-INR forex swap facility on June 8, covering FCNR(B) deposits, External Commercial Borrowings (ECBs) and Overseas Foreign Currency Borrowings (OFCBs).The facility has attracted total forex inflows of $56.85 billion as of August 13, according to data reported by authorised dealer banks.Of this, FCNR(B) deposits accounted for $52.3 billion, while OFCBs contributed $2.81 billion and ECBs $1.74 billion.While the mobilisation window for FCNR(B) deposits has been brought forward, the swap facility for ECBs and OFCBs will continue to remain open until December 31, 2026, according to the RBI's revised timeline.While the RBI has brought forward the deadline for concessional swaps under the FCNR(B) scheme, the window for concessional swaps through overseas foreign currency bonds (OFCBs) and external commercial borrowings (ECBs) remains open until December 31, 2026.RBI data shows that banks have raised $4.546 billion through the latter two routes so far.On Friday, Bank of Baroda became the latest bank to raise dollar-denominated bonds through the facility, mobilising $700 million in two tranches with three-year and five-year tenors.Prior to Bank of Baroda, five banks — State Bank of India Axis Bank and Canara Bank — had cumulatively raised $3.55 billion through dollar-denominated bonds.
The amount could rise to as much as $15 billion by the time the window closes on December 31, 2026.Sources told CNBC-TV18 that HDFC Bank, which raised $750 million through dollar-denominated bonds in June, may be looking to raise additional funds through this route.RBL Bank is also among the other banks looking to raise funds through the route, sources added.
The Reserve Bank of India (RBI) has shortened the window for mobilising FCNR(B) deposits under its special USD-INR forex swap facility to August 31, citing the encouraging response and strong forex inflows generated through the scheme.Under the revised timeline, FCNR(B) deposits mobilised until August 31, 2026, can be swapped with the RBI until September 11, 2026.The central bank had earlier said the facility would remain open until October 16 for FCNR(B) deposits mobilised between the date of the circular and September 30.The RBI introduced the special USD-INR forex swap facility on June 8, covering FCNR(B) deposits, External Commercial Borrowings (ECBs) and Overseas Foreign Currency Borrowings (OFCBs).The facility has attracted total forex inflows of $56.85 billion as of August 13, according to data reported by authorised dealer banks.Of this, FCNR(B) deposits accounted for $52.3 billion, while OFCBs contributed $2.81 billion and ECBs $1.74 billion.While the mobilisation window for FCNR(B) deposits has been brought forward, the swap facility for ECBs and OFCBs will continue to remain open until December 31, 2026, according to the RBI's revised timeline.While the RBI has brought forward the deadline for concessional swaps under the FCNR(B) scheme, the window for concessional swaps through overseas foreign currency bonds (OFCBs) and external commercial borrowings (ECBs) remains open until December 31, 2026.RBI data shows that banks have raised $4.546 billion through the latter two routes so far.On Friday, Bank of Baroda became the latest bank to raise dollar-denominated bonds through the facility, mobilising $700 million in two tranches with three-year and five-year tenors.Prior to Bank of Baroda, five banks — State Bank of India Axis Bank and Canara Bank — had cumulatively raised $3.55 billion through dollar-denominated bonds. The amount could rise to as much as $15 billion by the time the window closes on December 31, 2026.Sources told CNBC-TV18 that HDFC Bank, which raised $750 million through dollar-denominated bonds in June, may be looking to raise additional funds through this route.RBL Bank is also among the other banks looking to raise funds through the route, sources added.
