RBI's Dollar Swap Scheme Sees Over $72.8 Billion in Collections

The Reserve Bank of India (RBI) has reported that its dollar swap scheme has successfully accumulated over $72.8 billion in collections. This scheme, aimed at managing liquidity and ensuring stability in the foreign exchange market, has attracted substantial interest from Non-Resident Indians (NRIs) and domestic banks alike.

The remarkable figure was reached between June 8, 2026, and August 21, 2026, showcasing the effectiveness of the initiative in boosting forex inflows. The RBI had initially introduced this scheme to mitigate volatility in the Indian rupee and to provide an avenue for banks to enhance their foreign currency reserves.

Recent data indicates that banks mobilised approximately $13.1 billion within the eight days concluding on August 21, 2026. This increase reflects a steady influx compared to the previous figure of $15.6 billion raised in the 13 days from August 1 to August 13, 2026. Experts anticipate that total collections could reach about $80 billion before the current round of the facility concludes.

One contributing factor to the scheme's success is the attractive interest rates offered by Foreign Currency Non-Resident (Bank) deposits, which range between 6.00% to 7.50% for tenures of three to five years. This has particularly drawn in NRIs keen to secure higher returns on their capital.

In addition to the dollar swap scheme, banks have also engaged in Overseas Foreign Currency Borrowing, with a total of $4.86 billion raised during the same period. This borrowing serves as leverage for banks to fortify their foreign currency positions, enabling them to meet the demand for FCNR-B deposits from NRI clients.

Saumya Kanti Ghosh, Group Chief Economic Advisor at the State Bank of India, noted that the swift accumulation of funds suggests that banks might have already met their target goals for FCNR-B mobilization. He projected that overall collections through this route could be near $85 billion, further tightening the foreign exchange landscape in India.

With the RBI reducing the deadline for the concessional swap facility to encourage banks and optimise forex reserves, the institution aims to enhance financial stability ahead of a potential global economic shift.

As these developments unfold, market participants are closely monitoring the impacts on the Indian Rupee and the broader economic implications, particularly as the country navigates through a fluctuating global financial environment.