Now Reading: RBI Keeps FCNR Deposit Window Open Until 30 September
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RBI Keeps FCNR Deposit Window Open Until 30 September
India’s foreign exchange reserves rose by $10.5 billion to $692.9 billion in the week ended 31 July, the RBI said, their biggest weekly gain in six months. The rupee gained 1.2% that…
The Story in Brief
India’s foreign exchange reserves rose by $10.5 billion to $692.9 billion in the week ended 31 July, the RBI said, their biggest weekly gain in six months. The rupee gained 1.2% that week, closing at 95.38 to the US dollar.
The RBI will let its special FCNR(B) deposit window run until 30 September, Governor Sanjay Malhotra said, despite strong inflows. Livemint reports that India mobilised $40.8 billion in 53 days through FCNR(B) deposits, external commercial borrowings and overseas foreign-currency borrowings, with FCNR(B) accounting for 90%. Malhotra expects a healthy balance of payments surplus in FY27. The RBI said reserves cover more than 10 months of imports and 90.8% of external debt.
The Indian Opinion
Claims that the rupee’s pressure has vanished, or that the FCNR window signals a currency emergency, both overreach the evidence. Reserves have improved and inflows are strong, but the rupee still faces global oil and capital-flow risks. The useful test is whether reserves remain near $692.9 billion after the window closes, while the rupee avoids renewed sharp depreciation in the following months.
Sources (2): livemint.com, timesnownews.com
This story was synthesised by AI from the 2 sources linked above.
Updated: this story now draws on 2 sources.
