RBI forex swap window sees $65mn inflows as FCNR(B) deposits surge

The RBI's forex swap window designed to attract foreign currency deposits is drawing substantial inflows as banks and financial institutions rush to meet the August 31 closure date for the FCNR(B) segment. Latest data shows deposits under the Foreign Currency Non-Resident account facility have swelled to $65.39 million, reflecting strong market participation in the facility.

The special swap window, launched as a liquidity management tool, has proven particularly effective in attracting FCNR(B) deposits from overseas account holders. The August 31 deadline is driving a final push by market participants to take advantage of the competitive rates on offer through the facility.

While the FCNR(B) window closes at the end of August, the RBI has kept two other segments operational under the swap scheme. The External Commercial Borrowing (ECB) and Overseas Foreign Currency Bond (OFCB) windows remain open for fresh inflows until December 31, providing extended access for entities seeking to raise foreign currency resources.

The accumulated total of $72.85 million across all segments demonstrates sustained demand for the RBI's forex management tools at a time when external funding flows remain important for India's financial system. Market participants have utilized the facility to access competitive pricing for foreign currency liabilities during a period of volatile global financial conditions.