Now Reading: RBI to close FCNR deposit window on schedule, expects healthy BoP surplus
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RBI to close FCNR deposit window on schedule, expects healthy BoP surplus
RBI to close FCNR deposit window on schedule, expects healthy BoP surplus
The Reserve Bank of India will close its special FCNR(B) foreign currency deposit window on 30 September as originally scheduled, Governor Sanjay Malhotra said at a post-policy press conference, according to Livemint.…
The Reserve Bank of India will close its special FCNR(B) foreign currency deposit window on 30 September as originally scheduled, Governor Sanjay Malhotra said at a post-policy press conference, according to Livemint. Malhotra said there is no proposal under consideration to end the scheme early, even though inflows have been strong: India mobilised $40.8 billion in 53 days through FCNR(B) deposits, external commercial borrowings and overseas foreign-currency borrowings, with FCNR(B) deposits accounting for 90% of the total and HSBC, State Bank of India and ICICI Bank together drawing in about half the inflows. Malhotra said the balance of payments is expected to register a healthy surplus this year, and an IDFC FIRST Bank report cited in the same account raised its FY27 surplus estimate to $40 billion, projecting a current account deficit of 1.7% of GDP.
Indian Opinion Analysis
The RBI's decision to let the deadline stand, rather than extend a scheme pulling in unusually strong inflows, signals confidence in India's external position without the central bank saying so outright. The $40 billion surplus figure comes from a bank's research estimate, not an RBI forecast, so it should be read as one institution's projection rather than an official number. The FCNR(B) window closes on 30 September, and whether capital inflows then taper smoothly or drop sharply will show how much of that confidence holds.
Source: www.livemint.com
This brief was synthesised by AI from the source linked above.
