Reserve Bank of India says banks raised $72.8 billion overseas
Business
Indian banks just pulled in $72.8 billion from overseas, mostly thanks to nonresident Indians (NRIs) and other foreign loans.
The Reserve Bank of India says this big cash flow came as part of measures to boost inflows.
Most funds came through FCNR deposits
Most of the funds ($65.4 billion) came through FCNR deposits, while $7.45 billion was raised through other foreign currency borrowings.
To make things smoother, banks can now lend these funds back to NRIs, and the RBI will close a discounted foreign exchange swap facility for banks to hedge overseas deposits raised from nonresident Indians on August 31, but note that this swap option ends on August 31.