{"id":205434,"date":"2026-08-17T09:57:45","date_gmt":"2026-08-17T04:27:45","guid":{"rendered":"https:\/\/univest.in\/blogs-2\/?p=205434"},"modified":"2026-08-17T09:57:48","modified_gmt":"2026-08-17T04:27:48","slug":"fcnr-deposits-window-closure-august-31-rbi-2026","status":"publish","type":"post","link":"https:\/\/univest.in\/blogs-2\/fcnr-deposits-window-closure-august-31-rbi-2026\/","title":{"rendered":"FCNR Deposits Window Closes by August 31 as RBI Cites Strong Response: Higher Costs and Rupee Pressure Behind Premature Closure of FCNR-B Swap Facility"},"content":{"rendered":"
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FCNR deposits: RBI says swap facility available for new deposits up to Aug 31 (due to strong response). Was earlier to close Sep 30. Experts say higher costs and rupee pressure forced premature clo…<\/em><\/p>\n

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The FCNR deposits swap facility window has been compressed by one month, with the RBI on August 14 announcing that it will be available for new deposits only up to August 31, 2026 \u2014 moving forward from the earlier September 30 deadline. While the RBI cited ‘strong response’ as the reason, experts say higher costs and rupee pressure were the real drivers behind the premature closure of the FCNR-B window.<\/p>\n<\/div>\n

The FCNR deposits saga has taken a new turn. The RBI on August 14 announced that the swap facility for FCNR-B deposits \u2014 which was to remain open until September 30 \u2014 will now close for new deposits by August 31, 2026. The central bank cited ‘strong response’ as the official reason for the accelerated closure. But market experts point to a different set of factors: higher-than-expected swap costs and continued rupee pressure that made the FCNR-B window increasingly expensive to maintain past August.<\/p>\n

The FCNR deposits FCNR-B swap scheme was designed to attract NRI foreign currency deposits into Indian banks by offering the RBI a special swap facility that allowed banks to convert the foreign currency deposits into rupees at attractive rates. The scheme has been successful in attracting deposits \u2014 ‘strong response’ in RBI language confirms this \u2014 but the cost of providing the swap, combined with rupee depreciation pressure that increases the eventual repayment cost in foreign currency terms, appears to have made the full September 30 duration uneconomical.<\/p>\n

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