Collections under RBI's dollar swap scheme exceed $72.8 billion
Indian banks have mobilized over $72.8 billion under the RBI's special foreign-currency swap facility, with FCNR(B) deposits driving the majority of the inflows. Due to the rapid pace of accumulation, the RBI has decided to advance the closure of the mobilization window to August 31.
Why it matters
The surge in foreign currency inflows significantly bolsters India's forex reserves, providing greater stability to the rupee and strengthening the country's external balance sheet.
MUMBAI: Banks have mobilised $72.8 billion of foreign-currency inflows under RBI's special swap facility as of Aug 21, with the pace of mobilisation accelerating sharply in recent weeks. Foreign currency non-resident (bank) or FCNR(B) deposits accounted for $65.4 billion of the total, while overseas foreign currency borrowings (OFCBs) contributed $4.9 billion and external commercial borrowings (ECBs) $2.6 billion, as per RBI data released Saturday.The pace of mobilisation has increased almost every week. Inflows rose from $40.8 billion on July 31 to $56.9 billion on Aug 13 and $72.8 billion on Aug 21. Banks, therefore, added $32 billion in the three weeks to Aug 21, taking cumulative inflows to nearly 1.8 times the July-end level. FCNR(B) deposits rose from $36.7 billion on July 31 to $52.3 billion on Aug 13 and $65.4 billion on Aug 21.
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