Finance
EnglishRBI Opens Swap Window to Attract Foreign Currency Deposits
The RBI is opening a swap window for FCNR(B) deposits to attract foreign currency and give the rupee a much-needed boost. Announced on June 5, this scheme allows banks to swap foreign currency for rupees, making it easier to draw in depositors. With a lock-in period and some nifty exemptions, it’s a win-win for both banks and depositors!
few days ago | Anna Mary Robert
Quick rundown
1.RBI opens swap facility to boost foreign currency inflows.
2.FCNR(B) deposits help protect against exchange-rate fluctuations.
3.RBI bears hedging costs to make deposits more attractive.
4.2013's taper tantrum led to a similar RBI scheme.
5.The scheme aims to ease rupee pressure and strengthen banks.
