The Reserve Bank of India (RBI) closed its concessional swap facility for Foreign Currency Non-Resident (Bank), or FCNR(B), deposits on August 31 — a month ahead of schedule — after banks mobilised $127.2 billion under the scheme. The early closure aims to cap dollar inflows that have already outpaced the $26 billion raised in 2013, when then RBI Governor Raghuram Rajan launched a similar swap scheme. Back then, the rupee appreciated by 2.84 per cent against the dollar in over two months. This time, the rupee gained 0.18 per cent around the same number of months. FCNR(B)’s share within NRI deposits, which touched 40 per cent in 2013-14, fell sharply to 12 per cent by FY22, before recovering to 21 per cent by FY27 (as of June), still just over half its 2013-14 level.
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