Swap Facility for FCNR (B) Deposits
UR
- Applies toBanks that handle foreign money
- StatusIn force
- ImportanceMUST READ
- IssuedJun 08, 2026
- Amendmentsnone tracked
- Length16 points in 3 sections · 2 min read
The four dates on this rule
- PublishedJun 08, 2026The day RBI put this document out.
- Starts to applyNot statedNot stated separately in this document. Read the rule itself before you assume a start date.
- Time to get readyNot statedCannot be worked out until the day it starts to apply is known.
- Last date to actNot statedNo date to act by was found in this document. Other dates may sit inside single paragraphs.
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What it says
Must know
1. lock in period
Underlying deposits cannot be withdrawn in the first year.
2. premature withdrawal
After one year, banks may allow early withdrawal as per their own policy.
3. facility period
Facility starts immediately, ends October 16, 2026 for deposits raised till September 30, 2026.
Do it
1. swap tenor match
Swap period must match the period of the related deposits.
2. separate records needed
Banks must keep separate records and audit trail for deposits under this scheme.
3. conversion policy
Banks must use one consistent method for conversion and keep full documents.
4. minimum swap size
Banks must sell United States Dollars to Reserve Bank of India in lots of one million United States Dollars.
5. second leg rate
Second leg must use the same rate as the first leg; swap is at par.
6. declaration requirement
Banks must give a signed declaration that deposits follow scheme rules when asking for swap.
Background
1. swap currency
Banks can swap only in United States Dollars with Reserve Bank of India.
2. operating days
Swap facility will run every working day in Mumbai, not on Saturdays or holidays.
3. weekly usage limit
Each bank can use the swap facility only once in a week.
4. first leg rate
In the first leg, bank sells United States Dollars to Reserve Bank of India at FBIL reference rate.
5. spot settlement
First leg of the swap will settle on spot from trade date.
6. no swap cancellation
Swaps done with Reserve Bank of India under this facility cannot be cancelled.
7. normal FCNR rules apply
Usual FCNR B deposit rules apply, except where this scheme says otherwise.