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Economics4h 12m ago
The 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.
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India
Who
RBI, Raghuram Rajan, Sneha Pandey
What
The 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.
When
Sat, 13 Jun 2026 00:00:00 GMT · 4h 12m ago
Where
India ·
Why
Rising crude oil prices and global volatility threaten to narrow the central bank's policy options.
The Frontline Impact
How this affects you
This strategy aims to attract up to $65 billion through FCNR(B) deposit subsidies and ECB swap facilities, shoring up India's external finances and preserving policy flexibility amidst global uncertainty, preventing the need for interest rate hikes that could harm domestic investment and consumption.
Story chain
3 events in this thread- Economics4h 12m 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
- Currently Reading4h 12m 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.
- Economics4h 12m 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.Open article