ICICI Bank disclosed that it has mobilised approximately $17.88 billion, equivalent to about ₹1.70 lakh crore, through Foreign Currency Non‑Resident (Bank) deposits – commonly abbreviated as FCNR(B) – under the Reserve Bank of India’s special USD‑INR swap facility. The regulatory filing, dated September 2, 2026, specifies that the mobilisation figures are based on deposits recorded up to August 31, which was the cut‑off date for fresh FCNR(B) deposits eligible for the scheme.
Bank‑level utilisation of the swap facility
The filing further details that ICICI Bank’s overseas branches and subsidiaries extended loans amounting to roughly $9 billion, or ₹85,600 crore, against the FCNR(B) deposits it attracted. In addition to direct lending, the bank issued standby letters of credit worth about $3.63 billion, translating to ₹34,600 crore, to other financial institutions in connection with loans secured by these foreign‑currency deposits.
All rupee‑denominated figures presented in the filing are convenience conversions calculated using the exchange rate that prevailed on August 31. The bank also noted that the disclosed numbers are provisional and have not undergone an audit, underscoring that they represent a snapshot of activity as of the reporting date.
RBI’s special forex swap scheme
The Reserve Bank of India introduced the special USD‑INR swap facility in June 2026 with the explicit aim of encouraging commercial banks to mobilise foreign‑currency inflows, including fresh FCNR(B) deposits. Initially, the facility was slated to run for a longer period, but the central bank subsequently advanced the deadline for eligible FCNR(B) deposits to August 31, citing a robust response from banks and the resulting surge in foreign‑exchange inflows.
To further support participation, the RBI later granted banks greater flexibility in accessing the swap mechanism ahead of the deadline. Notably, the central bank permitted swaps to be executed outside the regular weekly window for transactions exceeding $100 million, thereby easing operational constraints for large‑scale foreign‑currency operations. The RBI has also clarified that swaps against FCNR(B) deposits mobilised by the August 31 cut‑off may continue to be availed until September 11, 2026.
Scale of the broader facility
According to a Reuters report referenced in the filing, by late August the FCNR(B) component of the RBI’s broader forex swap facility had attracted more than $65 billion in foreign‑currency inflows. When combined with other strands of the scheme—including external commercial borrowings and overseas foreign‑currency borrowings—the total mobilisation across the entire facility approached $73 billion.
The overarching purpose of the special swap facility, as articulated by the RBI, is to bolster foreign‑exchange inflows and reinforce India’s external liquidity position. By providing a structured avenue for banks to convert foreign‑currency deposits into rupee‑denominated funding, the scheme seeks to enhance the stability of the country’s balance of payments while offering banks a reliable source of low‑cost foreign currency.
ICICI Bank’s reported mobilisation of $17.88 billion therefore represents a substantial share of the total inflows captured by the FCNR(B) segment of the programme. The bank’s ability to translate those deposits into sizable loan commitments and standby credit facilities illustrates how the swap mechanism is being operationalised on the ground, converting foreign‑currency resources into productive credit for Indian borrowers and counterparties abroad.
While the figures remain provisional and subject to audit, the disclosed data provides a clear indication of the early impact of the RBI’s policy intervention. The combination of an accelerated deadline, expanded operational flexibility, and an extended swap window for large transactions appears to have spurred significant participation from major banks such as ICICI, reinforcing the central bank’s objective of strengthening the nation’s foreign‑exchange reserves and external liquidity outlook.
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