2013 FCNR(B) Swap Scheme
Precedent from the Taper Tantrum
UPSC frequently tests comparative recall of India's two major FCNR(B)-based swap interventions: the 2013 scheme launched during the "taper tantrum" (when the US Federal Reserve's signal to taper quantitative easing triggered capital flight and sharp rupee depreciation across emerging markets, including India) and the 2026 scheme.
- In September 2013, then-RBI Governor Raghuram Rajan opened two swap windows: one letting banks swap FCNR(B) deposits (of three years and above) into rupees at a fixed rate of about 3.5% a year (roughly 3 percentage points below the market rate), and another for overseas foreign currency borrowings by banks at about 1% below market rates.
- By the close of the 2013 scheme (November 30, 2013), the two windows together had mobilised about $34 billion, with the FCNR(B) window alone contributing roughly $26 billion.
- The 2013 scheme was a direct crisis-response tool to defend the rupee and rebuild foreign exchange reserves after the taper tantrum triggered sharp currency depreciation and capital outflows from India and other emerging markets.
● Tracked since July 27, 2026 · last seen September 21, 2026 · updates as the daily brief publishes
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