The currency lost 18 paise from its previous closing level of 95.43 and reached 95.62 during trading. Forex traders said the RBI sold dollars in the market to support the rupee.

Announced on August 14, the revised schedule makes deposits collected by August 31, 2026 eligible for the facility, rather than September 30. Banks must finish the related swaps by September 11, replacing the earlier October deadline. The arrangement lets banks exchange foreign currency for rupees with the RBI on cheaper terms, helping attract foreign-currency fixed deposits from NRIs.

Banks mobilised $52.30 billion between June 8 and August 13, 2026. SBI’s Group Chief Economic Advisor, Soumya Kanti Ghosh, said the mobilisation goal had been achieved and projected collections of as much as $85 billion by August-end. These inflows help keep India’s balance of payments in surplus by roughly $50 billion.

SBI researchers did not view hedging expenses as the main reason for ending the window early. Swap costs are estimated at $10.5 billion across five years, against foreign exchange reserves of $700 billion. With the current account deficit at 1% of GDP, attention now shifts towards routine dollar purchases by importers as the facility winds down.