- NRIs placed $65.397 billion in FCNR(B) deposits by August 21, 2026, boosting reserves.
- India’s foreign exchange reserves hit a record $729.328 billion in the week ended August 21.
- Governor Sanjay Malhotra said there was no proposal to prematurely close the incentive scheme.
NRIs placed $65.397 billion in FCNR(B) deposits by August 21, 2026, helping lift India’s foreign exchange reserves to a record $729.328 billion. The deposits formed the largest part of a broader foreign-exchange mobilisation under the Reserve Bank of India’s swap programme.
The total foreign exchange generated through the facility reached $72.848 billion by the same date. India’s reserves set the record in the week ended August 21, 2026.
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Sanjay Malhotra, Governor, Reserve Bank of India, said there was “no proposal to prematurely close” the deposit incentive scheme. The market expected inflows to remain strong while the window stayed open.
The $100 billion figure in the headline refers to an estimate for combined mobilisation through FCNR(B), external commercial borrowings and overseas foreign-currency borrowings. It does not represent the verified FCNR(B) deposit total alone.
The confirmed deposit figure was $65.397 billion as of August 21, 2026. The broader facility total was $72.848 billion, including the related channels.
The Reserve Bank of India announced the special USD-INR swap facility on June 8, 2026, through circular FMOD.MAOG.No.S-56/01.06.016/2026-27. The measure covered fresh deposits with a three to five years’ tenor.
The deposit window closed before the final swap deadline
The central bank opened the facility for fresh FCNR(B) deposits on June 8, 2026. It later moved the mobilisation cutoff to August 31, 2026, from an earlier September deadline.
| Programme stage | Date | Position |
|---|---|---|
| Facility opened | June 8, 2026 | Fresh FCNR(B) deposits became eligible |
| Deposit mobilisation cutoff | August 31, 2026 | Qualifying FCNR(B) deposits had to be mobilised |
| Swap completion deadline | September 11, 2026 | Eligible deposits could still be swapped |
| ECBs and OFCBs | December 31, 2026 | The August release kept these channels open until this date |
Banks could complete swaps with the RBI until September 11, 2026, provided they had mobilised eligible deposits by the August 31 cutoff. The August release gave the FCNR(B) channel the earlier closing date, while allowing ECB and OFCB activity through December 31, 2026.
Banks used the swap to limit currency exposure
FCNR(B) deposits are foreign-currency term deposits held by non-resident Indians with Indian banks. The foreign-currency structure shields depositors from direct rupee exchange-rate risk.
The concessional swap facility addressed the banks’ exposure when they raised those deposits. That support helped banks offer attractive rates to NRIs and encouraged foreign-currency inflows.
The 2026 programme sought to draw funds during rupee pressure and volatility in crude oil markets. The inflows also supported India’s balance of payments and reserve buffer.
The programme was not limited to one deposit category. Related instruments added to the total.
The programme drew money through three channels
Reporting on August 21 showed different components of the mobilisation:
| Component or reporting point | Amount | Date or period |
|---|---|---|
| FCNR(B) deposits | $64.40 billion | By August 21, 2026, in one reported breakdown |
| OFCBs | $4.86 billion | By August 21, 2026 |
| ECBs | $2.59 billion | By August 21, 2026 |
| FCNR(B) mobilisation | About $53 billion | By August 14, 2026 |
| ECB/OFCB inflows | $4.5 billion | By August 14, 2026 |
A separate RBI-linked tally placed FCNR(B) deposits at $65.397 billion and total foreign exchange generated at $72.848 billion on August 21. The reported figures use different breakdowns of the programme’s channels.
The FCNR(B) channel supplied most of the mobilisation. ECBs and OFCBs contributed the remainder of the related inflows.
Jefferies lifted its estimate above the earlier forecast
Jefferies raised its projection for total mobilisation to $90 billion to $100 billion by August 31, 2026. Its earlier estimate had been $70 billion to $80 billion.
That forecast range supplied the basis for the $100 billion description. The verified FCNR(B) figure remained $65.397 billion as of August 21, 2026.
Analysts described the 2026 episode as materially larger than earlier FCNR episodes, including the 2013-era mobilisation. The scale reflected the strong response to the swap-supported deposit window.
The reserve record also exceeded India’s previous high. Reserves had reached $728.494 billion in the week ended February 27, 2026.
Eligible deposits mobilised by August 31, 2026, could still be covered by swaps completed through September 11, 2026. The separate ECB and OFCB channel remained available through December 31, 2026, under the August release.
