India's push to attract foreign currency seems to have paid off. A special US dollar-rupee swap facility introduced by the Reserve Bank of India (RBI) has drawn in $136 billion in inflows as of August 31, as per provisional data released by the central bank.

The scheme, launched on June 8, was designed to encourage non-resident Indians (NRIs) and Indian companies to bring more foreign currency into the country. It worked through three channels: NRI deposits held in foreign currency, known as FCNR(B) deposits; overseas foreign-currency borrowings by Indian entities; and external commercial borrowings.

Of the total $136 billion, NRI deposits did the heavy lifting, contributing $127 billion or roughly 93% of the total. The remaining amount came from overseas foreign-currency borrowings ($5 billion) and external commercial borrowings ($3.8 billion). These figures are provisional and subject to final reporting and reconciliation.

Faster Than Expected

The response to the scheme picked up sharply in its final days. The government had reported inflows of $73 billion as of August 21, indicating more than $63 billion flowed in during the last 10 days of the window alone. That surge prompted the RBI to close the FCNR(B) deposit window early, on August 31 instead of the originally planned September 30, after the facility had already achieved its objective ahead of schedule. The other two channels -- overseas borrowings and external commercial borrowings -- remain open until December 31, indicating that the final tally is likely to grow further.

Why This Matters

For context, the current haul dwarfs a similar RBI swap scheme run in 2013, which raised about $26 billion over roughly three months. The latest scheme has already brought in more than five times that amount.

The government has described the inflows as a way to strengthen India's "external buffers"; essentially, the pool of foreign currency reserves that helps the RBI during periods of global volatility and keep the economy resilient to external shocks like oil price spikes or capital flight.

Officials have also framed the strong response as a vote of confidence from the Indian diaspora.

The finance ministry noted that NRIs channeled savings into FCNR(B) deposits at a pace that exceeded expectations, which it linked to trust in India's banking system and broader economic outlook.

What's Next

While the NRI deposit component has now closed, the two borrowing-related channels stay open for another four months. That means today's $136.4 billion figure is a snapshot, not the final number - and analysts will be watching to see how much more flows in before the scheme wraps up at the end of the year.

For now, the scheme stands as one of the most successful dollar-mobilisation efforts in India's recent history, giving the RBI a bigger cushion at a time when global currency markets remain unpredictable.