India's central bank draws $20.7 billion via forex swap

India's central bank has mobilized $20.7 billion in foreign currency inflows through a special swap facility introduced to bolster the country's external finances, according to data released on Monday, July 20, 2026. The Reserve Bank of India (RBI) said the concessional swap window, operational since June 8, has attracted steady inflows, with the total figure representing funds raised through July 17.

The facility, announced on June 5, allows banks and eligible entities to swap freshly raised foreign currency funds with the RBI on favorable terms, reducing hedging costs and exchange-rate risk. The program aims to strengthen India's balance of payments and incentivize capital inflows. Foreign Currency Non-Resident Bank (FCNR-B) deposits accounted for the vast majority of the inflows, totaling $17.4 billion. Overseas Foreign Currency Borrowings contributed $1.97 billion, and External Commercial Borrowings added $1.34 billion.

The measures were introduced amid sustained pressure on the Indian rupee, which has declined to a series of record lows as elevated global oil prices raised concerns about a potential third consecutive annual balance of payments deficit. The rupee fell to a...