RBI will close special FCNR(B) scheme August 31 after $52.3B
Business
The Reserve Bank of India is wrapping up its special FCNR(B) deposit scheme ahead of schedule, thanks to an overwhelming $52.3 billion in deposits from nonresident Indians, or NRIs, since its launch on June 8.
Instead of running till September 30, the scheme will now close for new deposits on August 31, way earlier than planned.
Banks' dollar swap until September 11
This move was all about strengthening India's foreign exchange reserves by inviting NRIs to stash their foreign currency in Indian banks with attractive swap rates.
Banks still have until September 11 to use the RBI's dollar swap facility, and other related schemes stay open until December 31, 2026.
With most inflows coming from FCNR(B) deposits, economists expect banks to make a final push before the deadline hits.