RBI limits FCNR(B) deposit swap facility to August 31, total inflows at $56.84 billion
GS3Economy · S&T · Environment · Security· Monetary policy, RBI & banking· Prelims·
Why in news
The RBI announced the closure of the swap facility for FCNR(B) deposits for new mobilizations after August 31, impacting foreign currency deposit management.
Background
The RBI announced on August 14 that the swap facility for FCNR(B) deposits will be available only for deposits mobilized until August 31. As of August 13, total foreign inflows reached $56.84 billion, with FCNR(B) deposits accounting for $52.30 billion.
Facts for Prelims
- BodyRBI: The Reserve Bank of India is the central bank of India.
- FactFCNR(B) deposits accounted for $52.30 billion out of a total $56.84 billion in foreign inflows as of August 13.
- FactThe swap facility for FCNR(B) deposits will be available for swaps availed until September 11, 2026.
For Mains
Q. Discuss the significance of FCNR(B) deposits in managing India's external debt and the role of the RBI in regulating foreign currency liquidity.
Dimensions to cover in your answer
- liquidity management
- forex reserves stability
- impact on external debt
- monetary policy transmission
Keywords: liquidity management · foreign currency deposits · monetary policy · external debt · capital flows
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