The RBI has introduced a US Dollar-Rupee swap facility for FCNR (B) deposits mobilised for a period of three to five years, enhancing foreign currency management.
RBI Unveils Swap Facility for FCNR (B) Deposits
On June 8, 2026, the Reserve Bank of India issued a notification announcing the Swap Facility for Foreign Currency Non-Resident (Bank) [FCNR (B)] deposits. The facility is designed for deposits mobilised for a minimum tenor of three years and a maximum tenor of five years.
This amendment provides a strategic mechanism for banks to manage risks associated with foreign currency deposits, enabling improved foreign exchange liquidity management. It reflects the central bank's proactive approach in optimizing liquidity in the banking system.
Legal professionals working in banking law should prepare for inquiries from clients regarding compliance with this new facility. Reviewing the operational implications for banks under this framework will be essential in providing informed guidance.
Citations
- RBI/2026-27/99 (2026) RBI Notification
