Explained: Why RBI’s FCNR(B) and ECB swap window could be a game changer for banks (opens original article in a new tab)

RBI's FCNR(B) and ECB swap windows are designed to enhance bank liquidity, stabilise the rupee, and attract NRI deposits with improved hedging terms, offering mutual benefits to banks and investors.

• RBI's FCNR(B) and ECB swap windows aim to boost liquidity, stabilise the rupee, and ease funding costs for banks.
• NRIs can earn 15-26% annual returns with 9x leverage, while banks gain 60-65 basis points in spread benefits.
• Concessional swap facility reduces hedging costs for banks by 200-250 basis points on overseas borrowings.