Raghuram Rajan’s RBI mulls closing forex swap window for oil companies

RBI had opened dollar window in Sept for oil marketing companies to protect the rupee from a sharp fall.

Written by Reuters | Mumbai | Published:October 18, 2013 12:26 pm

The Reserve Bank of India (RBI) is considering closing the dollar swap window offered to oil companies,Bloomberg TV said citing sources on Friday.

The RBI had opened the dollar window for oil marketing companies to protect the rupee from a sharp fall.

Over five billion dollars have come in through the swap facility.

Soon after taking over as RBI Governor on September 4,Raghuram Rajan announced the opening of a swap window facility to encourage banks to lure NRI funds.

Under the facility,banks are permitted to swap fresh FCNR(B) dollar funds,mobilised for a minimum tenor of three years,at a fixed rate of 3.5 per cent per annum for the tenor of the deposit.

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