Indian central bank's capital-flow measures draw nearly $41 billion
- The RBI says it receives $36.7 billion via Foreign Currency Non-Resident deposits raised by banks
MUMBAI: Steps by India’s central bank to draw more capital flows into the country and support the rupee have brought in $40.81 billion, according to data released on Saturday.
The Reserve Bank of India in June announced a series of foreign exchange measures, including concessional hedging facilities and swap arrangements, to encourage overseas fundraising by state-run firms, banks and through foreign currency non-resident deposits.
Here are the details of the inflows so far:
The RBI said it received $36.7 billion via Foreign Currency Non-Resident deposits raised by banks. Lenders are permitted to swap these deposits with the central bank under a zero-cost hedging facility open until the end of September.
Indian central bank’s FX forward book shrinks slightly to $103.3 billion
It said $1.5 billion had been raised via swap facilities for External Commercial Borrowings and $2.57 billion through Overseas Foreign Currency Borrowings undertaken by authorised lenders. This window is open until the end of the year.
SBI Economic Research expects $65 billion to $70 billion in FCNR deposits and inflows from both schemes at $80 billion to $85 billion.
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