Mint Explainer | Can India mop up $50 billion under RBI’s FCNR (B) scheme?
On 5 June, the RBI allowed banks to raise fresh and renewed FCNR (B) deposits with maturities of three to five years and swap those dollars with the central bank at a concessional rate. By absorbing the foreign exchange hedging cost, the RBI has removed a key expense for banks, enabling them to offer higher dollar deposit interest rates to attract overseas capital.
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