RBI · Reserve Bank of India ·

Data on Forex inflows via FCNR(B) Deposits, External Commercial Borrowings (ECBs) and Overseas Foreign Currency Borrowings (OFCBs) under Reserve Bank’s Swap facility

Distilled Policy Brief

  • The Reserve Bank of India introduced a special USD-INR Forex Swap facility on June 8, 2026, to attract Foreign Currency Non-Resident (Bank) deposits, External Commercial Borrowings, and Overseas Foreign Currency Borrowings.
  • The scheme window was open until August 31, 2026, for FCNR(B) deposits and remains open until December 31, 2026, for ECBs and OFCBs.
  • Authorised Dealer Banks report the ongoing position of forex inflows under this facility to help manage domestic liquidity and exchange rate volatility.

🎯 Prelims High-Yield Examination Points

The special USD-INR Forex Swap facility covers FCNR(B) deposits, ECBs, and OFCBs, managed by the Reserve Bank of India.

⚖️ Mains Analytical & Syllabus Linkages

Analysis of how central bank swap facilities help stabilize foreign exchange reserves, manage capital accounts, and mitigate imported inflation during global macroeconomic shocks.

🎯 UPSC Prelims Practice Drill

Economy

With reference to the special USD-INR Forex Swap facility introduced by the Reserve Bank of India, consider the following statements: 1. The facility covers Foreign Currency Non-Resident (Bank) deposits, External Commercial Borrowings (ECBs), and Overseas Foreign Currency Borrowings (OFCBs). 2. The scheme window for FCNR(B) deposits was kept open until August 31, 2026, while for ECBs and OFCBs, it remains open up to December 31, 2026. 3. The reporting of forex inflows under this facility is handled directly by Authorised Dealer Banks. Which of the statements given above are correct?

  • [A] 1 and 2 only
  • [B] 2 and 3 only
  • [C] 1 and 3 only
  • [D] 1, 2 and 3
▶ Reveal Official Answer & Analytical Explanation
✓ Correct Option: [D] 1, 2 and 3

All three statements are correct based on the RBI's introduction of the special USD-INR Forex Swap facility. The facility encompasses FCNR(B) deposits, ECBs, and OFCBs, with specific operational windows (till August 31, 2026, for FCNR(B) and December 31, 2026, for ECBs/OFCBs), and the ongoing inflow positions are reported by Authorised Dealer Banks.

Tark High-Yield Question Bank ⚡ Practice Full Test in Testing Arena ↗

🏛️ Historical Twin PYQ Anchor (2021)

UPSC Prelims 2021

Consider the following statements regarding the "National Clean Air Programme (NCAP)": 1. It is implemented by the Ministry of Environment, Forest and Climate Change. 2. Central Pollution Control Board acts as the sole regulatory executive body.

Forensic Anchor: Cabinet Allocation of Business Rules & NCAP Framework
Examiner Trap Takeaway: UPSC swapped Central Pollution Control Board role with State Pollution Control Boards for state-level monitoring.

📚 Static Syllabus & Constitutional Linkages

Balance of Payments and Capital Account: Understanding components of capital account convertibility, foreign portfolio investment, external commercial borrowings, and NRI deposits.
RBI's Monetary Management and Forex Operations: Study of sterilized and unsterilized intervention, forex reserves management, and exchange rate mechanisms in India.