RBI Swap Facility Mobilises $40.8 Billion, Nearly Doubles in Two Weeks
UPSC / SSC current affairs note · Economy
Why in news
The RBI's special swap facility has attracted $40.816 billion in forex inflows by July 31, 2026, nearly doubling from $20 billion in mid-July. This surge indicates strong confidence in the Indian economy and provides a significant buffer for the rupee.
Background
The Reserve Bank of India (RBI) introduced a special swap facility to encourage foreign currency inflows, particularly through FCNR(B) deposits, to stabilize the rupee and bolster foreign exchange reserves.
Key facts
RBI's special swap facility mobilised USD 40.816 billion in forex inflows as of July 31, 2026.
Inflows nearly doubled from July 17, 2026, showing a rapid increase.
FCNR(B) deposits contributed USD 36.725 billion, the bulk of total inflows.
The facility aims to attract foreign exchange to support the rupee.
The response indicates strong investor confidence in Indian markets.
Prelims pointers
- RBI: Reserve Bank of India
- FCNR(B): Foreign Currency Non-Repatriable (Banks) deposits
- Swap facility: A tool to manage forex liquidity
- Date: July 31, 2026
- Amount: USD 40.816 billion
Mains angles
- Discuss the role of RBI's swap facility in managing forex reserves and exchange rate stability.
- Critically examine the impact of FCNR(B) deposits on India's external sector.