Indian Banks Flooded with $72.85 Billion as RBI Forex Swap Schemes Gain Traction

The Reserve Bank of India's special USD-INR forex swap facility has seen significant inflows, totaling $72.85 billion as of August 21, 2026. This is part of a broader effort by Indian banks to raise overseas dollar funding amid the RBI's scheme.

Of this total, Foreign Currency Non-Resident (Bank) deposits accounted for $65.40 billion, while Overseas Foreign Currency Borrowings and External Commercial Borrowings contributed $4.86 billion and $2.59 billion respectively.

HDFC Bank recently raised $1.75 billion through a dollar bond issuance, marking its largest overseas fundraise since the 2008 Global Financial Crisis. The three-year notes carry a coupon of 5.159%, while the five-year notes offer a coupon of 5.401% with interest payable semi-annually.