RBI closes FCNR(B) window 1 month early after $100bn deposits
Business
India's FCNR(B) deposits just soared past $100 billion by August 31, blowing past the RBI's earlier projection of $80 billion across the three schemes.
Worried about too much money flooding in and shaking up the economy, the RBI closed this deposit window one month early.
Record foreign exchange reserves $729.33bn
Even with the early closure, banks can still use swap facilities for existing deposits until September 11.
The big inflow (along with other foreign borrowings) could push India's capital account surplus over $65 billion this year, and the foreign exchange reserves stood at a record high of $729.33 billion.
This gives the RBI more power to keep the rupee stable.