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Regulatory document · Reserve Bank of India

Swap Facility for FCNR (B) Deposits

UR

The four dates on this rule

This rulebook is short, and the page is short with it. This document is 1241 words long. It states 16 separate rules. So the page carries 16 points, not the thirty a long rulebook carries. Nothing has been left out to make it shorter.

At a glanceBanks can swap only in United States Dollars with Reserve Bank of India. Facility starts immediately, ends October 16, 2026 for deposits raised till September 30, 2026.

Official RBI page

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Underlying deposits cannot be withdrawn in the first year.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.

Where to go next