The Reserve Bank of India is using USD/INR sell-buy foreign-exchange swaps and other instruments to absorb surplus rupee liquidity after its June 8, 2026, scheme for attracting FCNR(B) deposits and external commercial borrowings drew $136.38 billion by August 31, well above the initial $80 billion target. Moody's said the three- to five-year deposits strengthen bank funding and liquidity, could reduce reliance on costly wholesale funding and help contain rising loan-to-deposit ratios, but create refinancing and maturity-concentration risks. The RBI closed the facility early on August 31 and is targeting a drain of about 7 trillion rupees after estimates of surplus liquidity reached roughly 9.7 trillion to 15 trillion rupees. Banks urged the central bank on September 3 to favor temporary FX swaps over a cash reserve ratio increase, and the RBI subsequently executed swaps estimated at about $700 million maturing in September and October.