BANKING & FINANCE
RBI
Reserve Bank of India Activates Twin USD-INR Forex Swap Mechanisms to Enhance Foreign Reserves
The Reserve Bank of India (RBI) introduced two distinct USD-INR foreign exchange swap facilities in June 2026 to curb volatility, optimize hedging costs, and augment foreign reserve buffers.
The first swap facility focuses on fresh and renewed Foreign Currency Non-Resident (Bank) or FCNR(B) deposits, requiring a minimum holding tenure of 3 years and a maximum of 5 years.
The second window targets External Commercial Borrowings (ECBs) and Overseas Foreign Currency Borrowings (OFCBs) with a minimum maturity of 3 years and a fixed swap rate of 1.5% per annum.
This intervention acts as a tactical policy defense tool to insulate the external sector from evolving international interest rate adjustments and sudden currency outflows.
The first swap facility focuses on fresh and renewed Foreign Currency Non-Resident (Bank) or FCNR(B) deposits, requiring a minimum holding tenure of 3 years and a maximum of 5 years.
The second window targets External Commercial Borrowings (ECBs) and Overseas Foreign Currency Borrowings (OFCBs) with a minimum maturity of 3 years and a fixed swap rate of 1.5% per annum.
This intervention acts as a tactical policy defense tool to insulate the external sector from evolving international interest rate adjustments and sudden currency outflows.
Key Facts / Static GK
FCNR(B) stands for Foreign Currency Non-Resident (Bank) Deposits
ECB stands for External Commercial Borrowings
RBI Headquarters: Mumbai, Maharashtra
RBI was established in 1935 under the Reserve Bank of India Act, 1934
ECB stands for External Commercial Borrowings
RBI Headquarters: Mumbai, Maharashtra
RBI was established in 1935 under the Reserve Bank of India Act, 1934
Practice Quiz — 10 June 2026
Q1. Who has assumed charge as the Director of the ICAR-National Academy of Agricultural Research Management (ICAR-NAARM) in Hyderabad?
Answer: (B) Raman Meenakshi Sundaram — Raman Meenakshi Sundaram has taken charge as the Director of ICAR-National Academy of Agricultural Research Management (ICAR-NAARM) in Hyderabad.
Q2. What is the primary objective of the newly launched 'LPMS - VINIMAY' portal?
Answer: (C) Streamlining border cargo and passenger movement — The LPMS - VINIMAY system is a single digital platform developed to streamline cross-border trade, cargo logistics, and passenger clearances at land ports.
Q3. The first export consignment of the GI-tagged Tezpur Litchi was facilitated to Dubai from which Indian state?
Answer: (C) Assam — The GI-tagged Tezpur Litchi belongs to Assam, and its first export consignment to Dubai was recently facilitated by APEDA.
Q4. Which state government launched the 'Blue Valley Cluster Initiative' in collaboration with the European Union?
Answer: (B) Assam — The Assam Government and the European Union (EU) jointly launched the Blue Valley Cluster Initiative in Guwahati to strengthen cooperation in the bioeconomy sector.
Q5. Which private sector bank has partnered with Centrum Finverse to launch an integrated 3-in-1 account?
Answer: (D) Bandhan Bank — Bandhan Bank has partnered with Centrum Finverse Ltd to launch an integrated 3-in-1 account (comprising Banking, Demat, and Trading accounts) on a single platform.
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