Bringing in US dollars: RBI flags off FCNR(B) chase, pushes banks to go all out for forex inflows (opens original article in a new tab)

The RBI is pushing banks to increase foreign currency inflows through FCNR(B) deposits, offering incentives like swap facilities and higher interest rates to strengthen forex reserves and stabilise the rupee.

• RBI deputy governor Rohit Jain urged banks to increase FCNR(B) deposits to boost dollar inflows.
• Banks raised interest rates on FCNR(B) deposits by 200-300 basis points, with rates between 5.25% and 7.1%.
• RBI introduced a 1.5% fixed-rate swap facility and removed restrictions on letters of credit against FCNR(B) deposits.