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Economics4h 15m ago
The RBI has announced a special FCNR(B) deposit scheme where it will absorb hedging costs on new deposits and introduced concessional foreign exchange swap facilities for external commercial borrowings (ECBs) by public sector entities to attract foreign capital.
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India
Who
RBI, Raghuram Rajan, Sneha Pandey, Indian banks, Non-Resident Indians (NRIs), Overseas Citizens of India (OCIs), Persons of Indian Origin, public sector enterprises, Government of India, foreign investors
What
The RBI has announced a special FCNR(B) deposit scheme where it will absorb hedging costs on new deposits and introduced concessional foreign exchange swap facilities for external commercial borrowings (ECBs) by public sector entities to attract foreign capital.
When
Sat, 13 Jun 2026 00:00:00 GMT · 4h 15m ago
Where
India ·
Why
Faced with rising crude oil prices, geopolitical tensions, and external-sector pressures, the RBI aims to strengthen the balance of payments without compromising growth and to avoid interest rate hikes.
The Frontline Impact
How this affects you
These measures are designed to attract significant foreign inflows, potentially between US$55 billion and US$65 billion, which will help to shore up India's external finances and preserve policy flexibility, reducing pressure on the rupee and the need for monetary tightening.
Story chain
3 events in this thread- Economics4h 15m agoThe RBI has implemented a policy framework that includes FCNR(B) deposit subsidies and ECB swap facilities to attract up to $65 billion in foreign inflows.Open article
- Economics4h 15m agoThe RBI has chosen to attract foreign capital by reviving FCNR(B) incentives, easing ECB norms, and making Indian government bonds attractive to overseas investors to strengthen the balance of payments without compromising growth.Open article
- Currently Reading4h 15m agoThe RBI has announced a special FCNR(B) deposit scheme where it will absorb hedging costs on new deposits and introduced concessional foreign exchange swap facilities for external commercial borrowings (ECBs) by public sector entities to attract foreign capital.