RBI to Let FCNR Deposit Window Close on 30 September

The Story in Brief

The Reserve Bank of India will not close or extend its special FCNR(B) deposit window before its 30 September deadline, Governor Sanjay Malhotra said. He said strong capital inflows were expected to support a healthy balance of payments surplus this financial year. The scheme allows banks to raise three to five-year FCNR(B) deposits and swap the dollars with the RBI at a concessional rate.

India mobilised $40.8 billion through FCNR(B) deposits, external commercial borrowings and overseas foreign-currency borrowings in 53 days. FCNR(B) deposits made up 90% of the total. An IDFC FIRST Bank report estimated the FY27 balance of payments surplus at $40 billion, above its earlier $25 billion estimate.

The Indian Opinion

The strong inflows provide the RBI with greater foreign exchange support, but the figures do not remove all currency risks. The rupee has faced depreciation pressure, and future liquidity could change as the scheme ends and other flows shift. Claims that the window alone will stabilise the rupee would be premature. The RBI’s decision suggests confidence, while keeping policy flexibility if conditions weaken.

Source: livemint.com

This story was synthesised by AI from the source linked above.

Ask their opinion on this story

They have read this article, our coverage, and the web.

Rabindranath TagoreGandhiMuhammad Ali JinnahB. R. AmbedkarJawaharlal NehruVinayak Damodar SavarkarSubhas Chandra Bose

AI simulations of historical figures. Responses are generated from the historical record, not authentic statements.