Sources Say FCNR(B) Inflows Under Swap Window Topped $100 Billion: Financial Express

Inflows under the RBI's swap scheme for FCNR(B) deposits crossed the $100 billion mark by the August 31 deadline, The Financial Express reported, citing official sources.

According to the report, the RBI's special swap window also attracted inflows through external commercial borrowings and overseas foreign currency borrowings, although the latest amounts under these routes were not disclosed. While the FCNR(B) window closed on August 31, banks can avail of the swap facility for deposits already contracted until September 11.

The latest mobilisation has significantly exceeded the earlier reported projections of $80 billion across the three schemes. According to RBI data available through August 21, inflows under the three routes stood at $72.85 billion, comprising $65.4 billion through FCNR(B), $4.86 billion via OFCBs and $2.59 billion through ECBs.

The strong response prompted the RBI to close the FCNR(B) window a month ahead of its original September 30 deadline, with Governor Sanjay Malhotra describing the decision as a calibrated and data-driven response to evolving conditions. The ECB and OFCB windows will remain open until December 31.

The inflows are expected to strengthen India's balance of payments and provide the RBI with greater capacity to support the rupee. The country's foreign exchange reserves had risen to a record $729.33 billion in the week ended August 21.