Total FCNR(B) Inflows Under RBI Swap Window $127 Bln, Nearly Half of It in Last 10 days

Banks mobilised $127.2 billion in FCNR(B) deposits under the Reserve Bank of India’s swap facility, which closed on August 31, with nearly half of the inflows coming in during the final 10 days of the window.

FCNR(B) deposits mobilised under the window stood at $65.4 billion as of August 21. This implies banks raised about $61.8 billion in the final 10 days of the scheme.

The RBI had advanced the deadline for the FCNR(B) swap window to August 31 from September 30, citing an “encouraging response” to the facility.

Total inflows under the broader swap facility stood at $136.38 billion as of August 31. Overseas foreign currency borrowings contributed $5.26 billion and external commercial borrowings $3.89 billion.

The swap windows for overseas foreign currency borrowings and external commercial borrowings remain available until the end of the calendar year.

The RBI Governor announced the swap facility at the June monetary policy meeting. After announcing the revised closure date for the FCNR(B) window, Governor Sanjay Malhotra said inflows had been stronger than the central bank expected and also exceeded most market participants’ expectations.