Under the RBI’s concessional swap facility, Banks and public sector undertakings raised $4.860 billion.
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FRANCIS MASCARENHAS
In order to absorb surplus liqudity in the banking system arising from robust inflows via Foreign Currency Non-Resident (Bank) deposits, the RBI has decided to conduct a 15-day Variable Rate Reverse Repo (VRRR) auction for a whopping ₹6 lakh crore under the liquidity adjustment facility (LAF) on August 31, 2026.
This auction, probably the biggest in recent times, comes in the backdrop of the banking system being awash with liquidity. As per RBI data, the liquidity system in the banking system stood at ₹3,74,942.34 crore as on August 27, 2026.8.28
Between June 8, 2026 (when banks started mopping up resources under the RBI’s concessional swap facility) till August 21, 2026, FCNR (B) deposits saw an accretion of a whopping $65.397 billion, per latest RBI data. ‘
Under the RBI’s concessional swap facility, Banks and public sector undertakings raised $4.860 billion (via Overseas Foreign Currency Borrowings) and $2.591 (via External Commercial Borrowings), respectively.
Published on August 28, 2026
