Indian banks mobilize $34 bn via RBI's special swap window

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Indian banks mobilize $34 bn via RBI's special swap window
In a move that is hailed by world as 'RBI's masterstroke' to save the country's currency from record lows, the Indian banks have collectively mobilized USD 34 billion (Rs 2.1 lakh crore) through the Foreign Currency Non-Resident (Bank), or FCNR(B), deposits from NRIs and banks' overseas borrowings within almost three months, said a media report.

Helping the rupee rise sharply from around 69/USD to around 61-62 level currently, the mobilization was more than four times of what analysts and experts had expected when RBI opened this window in September.

The special window opened by RBI allowed Indian and foreign banks to open FCNR(B) accounts for NRIs with a three-year lock-in period. Many banks also started financing those deposits for NRIs.

According to experts, the move was one of the best options that RBI had at that time when rupee was depreciating very fast and foreign fund inflows were drying up.

Dion Global Solutions Ltd.

Read more about: banks, rbi, swap window, fcnr, currency, nri
Story first published: Monday, December 9, 2013, 9:12 [IST]
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