MUMBAI: RBI has said that total forex mobilisation under its concessional dollar swap facility has crossed $40 billion, more than doubling in a fortnight and surpassing the FCNR(B) deposit mobilisation seen during the 2013 special window despite higher US bond yields and tax-related challenges affecting NRI investments.Authorised dealer banks had mobilised $40.8 billion under the facility as of July 31. This included $36.7 billion through Foreign Currency Non-Resident (Bank) deposits, $2.6 billion through overseas foreign currency borrowings (OFCBs) and $1.5 billion through external commercial borrowings (ECBs), the central bank said.The subsidised dollar swap facility allows banks to swap fresh FCNR(B) deposits, OFCBs and ECB inflows with RBI at a preferential rate, encouraging overseas fund mobilisation and boosting foreign exchange reserves.The latest inflows compare with $17.4 billion raised in the first 42 days after the scheme was operationalised on Jun. 8. The total mobilisation has more than doubled in about a fortnight.FCNR(B) deposits have already exceeded the around $26 billion mobilised under the 2013 special scheme in just over seven weeks, making it one of the fastest foreign currency deposit drives by Indian banks. The inflows have come despite elevated US Treasury yields, which have reduced the relative appeal of FCNR(B) deposits, and tax-related issues that have weighed on NRI investments.RBI announced the concessional swap facility to encourage fresh FCNR(B) deposits, OFCBs and ECB inflows. The facility will remain available until Sept 30, 2026, for FCNR(B) deposits and until Dec 31, 2026, for OFCBs and ECBs.
