Mumbai: The Reserve Bank of India’s (RBI) special foreign currency swap facility has mobilised more than $20 billion in foreign exchange, according to data released by the central bank on Monday.
The facility, operationalised through FCNR(B) deposits, External Commercial Borrowings (ECBs), and Overseas Foreign Currency Borrowings (OFCBs), was introduced to boost forex inflows amid global volatility.
According to the RBI, “The swap facility has seen avid interest and attracted steady forex inflows since its launch.
The $20 billion-plus mobilisation is expected to support the rupee and strengthen India’s external buffer. FCNR(B) deposits allow non-resident Indians to park foreign currency in Indian banks, while ECBs and OFCBs enable Indian corporates to raise funds overseas with a central bank backstop.
Analysts said the strong response reflects continued investor confidence and demand for hedging instruments amid global interest rate uncertainties.
