RBI's Forex Swap Mobilizes $73 Billion from NRIs in 11 Weeks

India's Reserve Bank of India (RBI) has facilitated a significant inflow of foreign currency, mobilizing $73 billion within just 11 weeks through its special USD-INR foreign exchange swap scheme, according to reports as of August 21, 2026.

The scheme, launched on June 8, 2026, targets Foreign Currency Non-Resident (Bank) deposits, Overseas Foreign Currency Borrowings, and External Commercial Borrowings. It aims to strengthen India's external financial buffers amid pressures from rising energy prices and a widening trade deficit.

Of the total inflows, $65.4 billion originated from deposits made by non-resident Indians (NRIs), underscoring their confidence in India's banking system and economic prospects, the RBI and finance ministry reported.

Gaura Sengupta, chief economist at India's IDFC First Bank, said the RBI is using these inflows to reduce currency volatility without attempting to influence the rupee's direction. She projected the rupee to settle near 96.50 per dollar by March 2027, after trading at 95.7 recently.

India's finance ministry described the incentivized deposit scheme as the country's "largest and fastest foreign-currency mobilization exercises," highlighting that inflows might reach $80 billion before the August 31 deadline for incentives, as stated by global brokerage Nomura.

Historical comparison shows that a similar 2013 initiative collected $26 billion over three months, making the current program significantly faster and larger.

SBI Chairman C S Setty expressed confidence that the State Bank of India will secure about $10 billion from NRIs and foreign investors by the end of August, as the RBI's concessional swap window closes. Setty noted that the bank targets a total business of Rs 200 lakh crore by 2030, aligning with India's economic growth trajectory.

Setty said, "In aggregate, we must be reaching the USD 10 billion mark, predominantly coming from the deposit side. But there is visibility of ECBs. ECB, of course, will have a longer period available to us, but by August 31, we should have mobilized around USD 9-10 billion on a consolidated basis."

Foreign capital outflows remain a challenge for India amid a growing trade deficit, which widened to $49.3 billion between April and July 2026 from $32.3 billion a year earlier, largely due to a 22% rise in energy imports. Foreign investors have sold $24.5 billion in equities so far this year, surpassing last year's total.

Global brokerage Citi expects India to report a balance of payments surplus of $53 billion for the financial year ending March 2027, down from $60 billion the previous year. Citi cautioned that after the incentivized deposit scheme ends, the balance of payments will depend on oil prices and foreign investments.