RBI changes major rule; this facility to be discontinued ahead of schedule

The RBI has decided to prematurely close the swap facility introduced for FCNR(B) deposits. The RBI noted that the scheme received an excellent response, resulting in a significant inflow of foreign currency into the country. Banks will now be able to avail of the swap facility from the RBI only for FCNR(B) deposits mobilized up to August 31, 2026.

Written by: Tahir Qureshi Edited by: Tahir Qureshi

Published: August 14, 2026, 10:37 PM IST

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New Delhi: The Reserve Bank of India (RBI) had launched a scheme to bring foreign currency—specifically the US dollar—into the country. This scheme was the FCNR (Foreign Currency Non-Resident) facility, which allowed Indians living abroad to deposit their foreign currency in India as Fixed Deposits (FDs). The scheme has attracted more funds than anticipated; consequently, a decision has been made to discontinue it ahead of schedule.

When is the facility closing?

The RBI has decided to prematurely close the swap facility introduced for FCNR(B) deposits. The RBI noted that the scheme received an excellent response, resulting in a significant inflow of foreign currency into the country. Banks will now be able to avail of the swap facility from the RBI only for FCNR(B) deposits mobilized up to August 31, 2026. The deadline to execute this swap with the RBI is September 11, 2026.

RBI’s Statement

In a statement regarding this development, the RBI said, “The swap facility for FCNR(B) deposits has received a very good response and has led to a significant inflow of foreign currency into the country. Therefore, this facility will now be available only for FCNR(B) deposits mobilized up to August 31, 2026. Banks will be able to avail of the swap facility from the RBI for these deposits until September 11, 2026. However, the swap facility for ECB (External Commercial Borrowings) and OFCB (Overseas Foreign Currency Borrowings) will continue as before until December 31, 2026.”

How much has been gained so far?

The RBI has released data indicating the volume of foreign currency that has entered the country so far. According to these figures, foreign currency worth $56.85 billion (approximately Rs 5.42 lakh crore) has flowed into the country under this facility up to August 13, 2026. FCNR(B) deposits accounted for the largest share, bringing in $52.3 billion (approximately Rs 4.99 lakh crore). Additionally, $2.81 billion (approximately Rs 2.68 lakh crore) came from OFCBs and $1.74 billion (approximately Rs 1.66 lakh crore) from ECBs.