- India attracted $143.6 billion in foreign currency inflows via RBI's concessional swap facility
- FCNR-B deposits led inflows, reaching $132.98 billion by August 31, RBI data showed
- Overseas borrowings added $5.32 billion and external commercial borrowings $5.30 billion
India has drawn $143.6 billion in foreign currency inflows through a concessional swap facility following a series of measures unveiled by the Reserve Bank of India to bolster foreign-exchange liquidity and support the rupee, according to a report.
The development follows a package of measures unveiled by the RBI in June, including cheaper hedging options and foreign-exchange swap arrangements, as the central bank sought to draw in overseas currency and steady the rupee after it fell to record lows earlier this year, Reuters reported.
Foreign currency non-resident (FCNR-B) deposits accounted for the largest share of the inflows. These deposits stood at $132.98 billion as of August 31, according to the RBI data.
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The FCNR-B deposit window was closed earlier than initially planned following strong inflows, highlighting the response from overseas Indians to the central bank's incentives.
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Overseas foreign currency borrowings contributed another $5.32 billion, while external commercial borrowings accounted for $5.30 billion of the total inflows. Borrowings raised through ECBs and OFCBs will remain eligible for the swap facility until December 31, the RBI said.
The measures are part of the central bank's efforts to bolster foreign exchange liquidity and provide support to the rupee during periods of currency-market volatility.
India has previously turned to its overseas diaspora to attract dollar deposits during episodes of external pressure. The RBI last used a similar incentive-based approach in 2013, when it offered measures aimed at encouraging foreign currency deposits and borrowings.
That initiative attracted around $26 billion, according to the report.
The latest inflows come as the RBI continues to monitor foreign exchange liquidity and developments in the currency market amid global economic and financial uncertainties.
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