1. [June 08, 2026](https://rbi.org.in/scripts/NotificationUser.aspx?Mode=0&Id=13468) - On the lines of special forex swap window for FCNR (B) Scheme in 2013, RBI announced a special [buy/sell USD-INR](Forex%20Swaps.md#USD/INR%20Buy/Sell%20Swap%20Auction) forex swap facility covering [FCNR(B) deposits](Deposits%20and%20Accounts.md#^712aaa), [ECBs](ECB%20(Borrowings%20in%20INR%20and%20FCY).md) and OFCB inflows. 1. Under the swap arrangement, a bank can sell US Dollars in multiples of USD one million to RBI and simultaneously agree to buy the same amount of US Dollars at the end of the swap period. In the first leg of the transaction, the bank will sell US Dollars to RBI at FBIL Reference Rate. 2. The settlement of the first leg of the swap will take place on spot basis from the date of transaction. The second leg of the swap will take place at the same rate as the first leg. The swap will be undertaken at par. 2. So RBI receives the forward rate on interest income on these dollars, but the principal amount will be exchanged at par. ## Timeline 1. [June 5, 2026](https://rbi.org.in/Scripts/BS_PressReleaseDisplay.aspx?prid=62864) - In the statement for June 5 MPC meet, governor announced a facility of concessional forex swap till 30th September 2026 to incentivize ECBs by PSUs, OFCBs by AD Category I banks, FCNR(B) deposits, and Non-Resident (External) Rupee (NRE) term deposits 1. [June 8, 2026](https://rbi.org.in/scripts/NotificationUser.aspx?Mode=0&Id=13468) - Operational details for the "Swap Facility for FCNR (B) Deposits". 1. Non-Resident (External) Rupee Account \[NR(E)RA\] - They are maintained in Indian Rupees (INR), and hence the depositor carries the exchange rate risk, and they are not part of the foreign currency swap facility. 2. However, banks (occasionally) receive other regulatory relaxations for NRE accounts, such as temporary [CRR Exemptions](Cash%20Reserve%20Ratio%20(CRR).md#CRR%20Exemptions) and removal upper limit (ceiling) on [interest rates on them](Interest%20Rates%20on%20Deposits.md#Timeline%20on%20Interest%20Rates%20on%20all%20types%20of%20deposits). 2. [June 8, 2026](https://rbi.org.in/scripts/NotificationUser.aspx?Id=13469&Mode=0) - Swap Facility for External Commercial Borrowings and Overseas Foreign Currency Borrowings’. 3. [June 23, 2026](https://rbi.org.in/Scripts/FAQDisplay.aspx?Id=178) - FAQs on Swap Facility for FCNR (B) deposits, External Commercial Borrowings and Overseas Foreign Currency Borrowings 2. [Jul 20, 2026](https://rbi.org.in/scripts/BS_PressReleaseDisplay.aspx?prid=63198) - Reporting of FCNR(B) Deposits, External Commercial Borrowings (ECBs) and Overseas Foreign Currency Borrowings (OFCBs) mobilized under Reserve Bank’s Swap Facility. 3. [Aug 01, 2026](https://rbi.org.in/scripts/BS_PressReleaseDisplay.aspx?prid=63274) - Reporting of FCNR(B) Deposits, External Commercial Borrowings (ECBs) and Overseas Foreign Currency Borrowings (OFCBs) mobilized under Reserve Bank’s Swap Facility. 4. [Aug 5, 2026](https://rbi.org.in/scripts/BS_SpeechesView.aspx?Id=1566) - Sanjay Malhotra, Governor of the RBI, stated during a [post-monetary policy press conference](RBI_MPS_20260805_Press%20Conference.pdf) "...As of now, there is no proposal under consideration to close the scheme prematurely. We will keep you posted on this." 5. [Aug 14, 2026](https://rbi.org.in/scripts/BS_PressReleaseDisplay.aspx?prid=63378) - Forex inflows via FCNR(B) Deposits, External Commercial Borrowings (ECBs) and Overseas Foreign Currency Borrowings (OFCBs) under Reserve Bank’s Swap facility. 1. RBI decided that the Swap facility for FCNR(B) deposits will be available only for deposits mobilized till August 31, 2026. 2. <span style="color:#C21E56;">There was [unnecessary criticism](FCNR%20(B)%20Swap%20Facility%20(June%208,%202026)%20-%20Closure.md) and bashing of RBI over its Aug 5 and Aug 14 statements on the termination of the FCNR(B) scheme.</span> ## FAQs 1. [Swap Facility for FCNR (B) deposits, External Commercial Borrowings and Overseas Foreign Currency Borrowings](https://www.rbi.org.in/Commonman/English/Scripts/FAQs.aspx?Id=3917) 2. Foreign Currency (Non-Resident) Account (Banks) Scheme [FCNR (B) Account](Deposits%20and%20Accounts.md#^712aaa) - A [table](https://www.rbi.org.in/commonman/English/scripts/FAQs.aspx?Id=3#:~:text=that%20can%20be-,opened%20in%20India%20by%20a%20non%2Dresident%3F,-Particulars) of comparison of NRE, NRO, FCNR(B) account in FAQs tilted [Accounts in India by Non-residents](https://www.rbi.org.in/Scripts/FAQDisplay.aspx?Id=52) ## Related Notes 1. [FCNR (B) Accounts](Deposits%20and%20Accounts.md#^712aaa) in [Deposits and Accounts](Deposits%20and%20Accounts.md) 2. [Forex Swaps](Forex%20Swaps.md) 3. [FCNR (B) Deposits (2013) - Forex-Special Swap Window](FCNR%20(B)%20Deposits%20(2013)%20-%20Forex-Special%20Swap%20Window.md) 4. [Capital Flows - Account & Management](Capital%20Flows%20-%20Account%20&%20Management.md) 5. [Exchange Rate Management](Exchange%20Rate%20Management.md) 6. [FCNR (B) Swap Facility (June 8, 2026) - Closure](FCNR%20(B)%20Swap%20Facility%20(June%208,%202026)%20-%20Closure.md)