The Reserve Bank of India (RBI) on June 08, 2026, has introduced a special US Dollar-Rupee Forex Swap Facility for fresh Foreign Currency Non-Resident (Bank) [FCNR(B)] deposits mobilized by Authorised Dealer Category-I (AD Cat-I) banks. The facility is available for FCNR(B) deposits with a minimum tenor of three years and a maximum tenor of five years, including deposits renewed upon maturity. While deposits may be mobilized in any freely convertible currency, the swap facility with RBI will be available only in US Dollars, with the swap tenor matching the tenor of the underlying deposits.
The following has been stated:
Under the scheme, banks can swap eligible FCNR(B) deposits with RBI by selling US Dollars to RBI at the prevailing FBIL Reference Rate and simultaneously agreeing to repurchase the same amount of US Dollars at the end of the swap period at the same exchange rate, effectively making the swap available at par. Banks may avail the facility once per week and can swap amounts in multiples of USD 1 million. The maximum amount eligible for swap in any week will be limited to the aggregate eligible FCNR(B) deposits mobilized during preceding weeks for which the facility has not already been utilized.
Banks are required to maintain separate records and audit trails for deposits covered under the scheme and furnish a declaration confirming compliance with RBI guidelines while seeking the facility. Deposits mobilized under the scheme will have a mandatory lock-in period of one year; although banks may permit premature withdrawal after one year as per their internal policies, swaps undertaken with RBI cannot be cancelled. The facility has come into effect immediately and will remain available until October 16, 2026, for eligible FCNR(B) deposits mobilized between June 08, 2026, and September 30, 2026.
Additionally, RBI has exempted these deposits from certain regulatory restrictions and clarified that banks are not required to execute any ISDA agreement with RBI to participate in the scheme.
[Circular No. RBI/2026-27/99]
