RBI’s early closure of FCNR deposit window sends banks, NRI investors scrambling
Since the scheme was announced on 5 June, the central bank has infused liquidity worth ₹5 trillion in the banking system, market participants estimate. Under the FCNR swap programme, banks are exchanging dollars for rupees with the central bank at a concessional rate. Simultaneously, RBI has been conducting variable rate reverse repo (VRRR) operations to suck out excess liquidity.
