FCNR (B) haul soars to $127 bn on final sprint exceeding mkt expectations

Banks mobilised $127.2 billion through the FCNR(B) swap window by August 31, taking total forex inflows under the RBI facility to $136.4 billion

Inflows through the Reserve Bank of India’s (RBI’s) concessional swap facility reached $136.4 billion by August 31, with banks mobilising $127.2 billion in foreign currency non-resident (bank), or FCNR(B), deposits — far exceeding late market expectations of $90-100 billion, data released on Wednesday showed.

The FCNR(B) window closed on August 31, while facilities for external commercial borrowings (ECBs) and overseas foreign currency borrowings (OFCBs) will remain open until December 31, 2026. Banks have so far raised $5.3 billion through OFCBs and $3.9 billion through ECBs.

 

FCNR(B) mobilisation accelerated sharply in the final week before the deadline, rising from $65.4 billion on August 21. The deposits raised under the scheme have maturities of between three and five years, with most of the inflows coming in the five-year category.

 

“It was beyond anyone’s expectation. It shows the confidence of the global financial system in India, because ultimately money has to come to this country,” said the chief executive officer (CEO) of a large bank.

 

The RBI operationalised the concessional swap facility for fresh FCNR(B) deposits, OFCB and ECB inflows on June 8. The initial deadline for the FCNR(B) window was September 30, 2026, but the central bank brought it forward by a month after receiving a strong response.