RBI relaxes weekly access rule for FCNR(B) swaps above $100 million | Finance News
The Reserve Bank of India (RBI) on Thursday allowed banks to access its concessional dollar-rupee swap facility for Foreign Currency Non-Resident (Bank), or FCNR(B), deposits outside their designated weekly window for transactions exceeding $100 million, sources aware of the development said.
Market participants said move would give banks greater flexibility to transfer large dollar inflows mobilised under the scheme to the central bank. Under the earlier arrangement, banks were assigned specific days of the week to access the swap window and could undertake swaps only once a week, resulting in a lag between mobilisation and transfer of funds to the RBI.
The relaxation is likely to benefit banks that have mobilised large amounts under the scheme, as they can now approach the RBI for swaps above $100 million without waiting for their allotted day, the sources said. “Today (Thursday), the RBI notified that banks can access the swap facility the same day if they are getting inflows more than $100 million,” said a source.
Operationalised on June 8, the RBI allowed banks to swap the foreign currency raised through these deposits with the RBI at the prevailing spot rate, with the central bank providing the currency back at maturity at a concessional cost.
The swap facility has attracted total inflows of $72.85 billion as of August 21, 2026, according to the latest data released by the RBI.
FCNR(B) deposits have emerged as the dominant contributor, accounting for $65.40 billion of the total inflows, nearly 90 per cent of the overall figure. Overseas foreign currency borrowings (OFCBs) added $4.86 billion, while external commercial borrowings (ECBs) brought in $2.59 billion during the same period.
The swap facility is available for FCNR(B) deposits mobilised only till August 31, with banks permitted to avail of swaps with the RBI till September 11, compared with the original schedule of September 30 for deposit mobilisation and October 16 for availing the swap facility.
However, the scheme for ECBs and OFCBs will continue to remain open till December 31 as previously announced.
