RBI brings forward deadline for banks to raise FCNR deposits after strong response
The Reserve Bank of India has moved up the deadline for banks to mobilise foreign currency deposits from non-resident Indians, after the scheme attracted more than $56 billion in inflows. The RBI said on Friday that banks will now have until August 31, 2026, to raise Foreign Currency Non-Resident (Bank), or FCNR(B), deposits under its special foreign exchange swap facility. The deadline was…
The Reserve Bank of India has accelerated the deadline for banks to collect foreign currency deposits from non-resident Indians (NRIs). Following a significant response to the scheme, the RBI moved the deadline from September 30 to August 31, 2026. Banks can still enter dollar-rupee swaps with the RBI against these deposits until September 11.
The central bank introduced the special foreign exchange swap facility on June 8 to encourage inflows through FCNR(B) deposits, OFCBs, and ECBs. As of August 13, total inflows through these channels reached $56.846 billion, with FCNR(B) deposits accounting for $52.3 billion. The swap facility for FCNR(B) deposits remains open until September 11, allowing banks more time to complete transactions after the deposit mobilization window closes.
The other two channels, ECB and OFCB, retain their existing timelines, with funds moulable through ECBs and OFCBs until December 31, 2026.
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