The RBI temporarily removed interest rate ceilings on FCNR(B) and NRE deposits, introducing a concessional swap facility to absorb banking hedge costs. This strategic move aims to attract $50-70 billion in leveraged NRI capital, fortifying forex reserves and shielding the Indian Rupee from severe global economic volatility.
Click to View MoreFCNR(B) accounts allow Non-Resident Indians to maintain fixed deposits in foreign currencies like the US Dollar. They offer tax-free returns and full repatriability, making them essential instruments for the RBI to manage forex reserves and ensure rupee stability.
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