Inflows via swap route hit $17.5 bn

The Reserve Bank of India on Monday said it has received $17.5 billion so far through the two special windows for swapping foreign currency non-resident (banks) deposits and overseas foreign currency borrowings by banks. The central bank operationalised these special windows on September 4 to prop the rupee which had fallen close to 30 per […]

Written by PTI | Mumbai | Published: November 12, 2013 1:23:02 am

The Reserve Bank of India on Monday said it has received $17.5 billion so far through the two special windows for swapping foreign currency non-resident (banks) deposits and overseas foreign currency borrowings by banks.

The central bank operationalised these special windows on September 4 to prop the rupee which had fallen close to 30 per cent between April and August. The window will remain open till November 30.

The special widow allows banks to swap the fresh FCNR (B) dollar funds,mobilised for a minimum tenure of three years and over,at a fixed rate of 3.5 per cent per annum for the tenor of the deposit.

The RBI also allowed banks to borrow up to 100 per cent of tier I capital from overseas,which can be swapped with the central bank at a concessional rate of 100 basis points below the ongoing swap rate prevailing in the market.

The rupee has gained nearly 11 per cent from September till date due to higher dollar inflows and other measures taken by the RBI.

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