RBI Introduces Forex Swap Facility for FCNR(B) Deposits

The Reserve Bank of India (RBI) has launched a US Dollar-Rupee Forex Swap Facility for fresh FCNR(B) deposits mobilized by Authorised Dealer Category-I banks with tenors ranging from 3 to 5 years. The facility aims to encourage foreign currency inflows by allowing banks to swap eligible FCNR(B) deposits with RBI in US Dollars at par.

The scheme is effective immediately and will remain available for deposits mobilized up to September 30, 2026, with the swap window open until October 16, 2026. Banks can avail the facility once a week, and the underlying deposits will be subject to a one-year lock-in period. The measure is expected to strengthen India's foreign exchange reserves and enhance foreign currency liquidity.