Under its unique USD-INR FX swap facility, which was launched on June 8, the Reserve Bank of India announced total foreign exchange inflows of $72.85 billion. At $65.40 billion, FCNR(B) deposits topped the mobilisation, followed by $2.59 billion in ECBs and $4.86 billion in OFCBs.
According to data released by the Reserve Bank of India on Saturday, forex inflows mobilised under its special USD-INR swap facility reached $72.85 billion as of August 21. The majority of the funds raised under the scheme came from FCNR(B) deposits.
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As of August 21, authorised dealer banks reported $65.397 billion in inflows through Foreign Currency Non-Resident (Bank) [FCNR(B)] deposits under the facility, according to the RBI. External commercial borrowings (ECBs) at $2.591 billion and overseas foreign currency borrowings (OFCBs) at $4.86 billion came next.
On June 8, the central bank launched a unique USD-INR forex swap facility that covers inflows through ECBs, OFCBs, and FCNR(B) deposits. The facility was created to bolster foreign exchange availability in the domestic financial sector and facilitate foreign currency inflows through these channels.
According to the RBI, the facility for ECBs and OFCBs will remain available until December 31, while the window for FCNR(B) deposits will remain open until August 31. According to the most recent data, FCNR(B) deposits account for about 90% of all reported inflows, making them the primary source of foreign currency mobilisation under the program.
The total inflows from ECBs and OFCBs were around $7.45 billion. The substantial reaction from banks and foreign depositors to the RBI's unique forex facility is demonstrated by the robust mobilisation, which takes place ahead of the August deadline for FCNR(B) deposits.
The central bank had already declared that the ECB and OFCB components would remain for a longer time, while the FCNR(B) window would end on August 31. The most recent data gives an update on how authorised dealer banks used the facility through August 21.
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FCNR(B) deposits continue to be the main source of the $72.85 billion inflow under the three components, which reflects a significant mobilisation of foreign currency under the RBI-backed system.
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