New Delhi, Aug. 21 -- Reserve Bank of India (RBI) Governor Sanjay Malhotra has defended the decision to advance the closure of the special Foreign Currency Non-Resident (Bank), or FCNR(B), swap facility by a month, calling it a 'calibrated' and 'data-driven' response to stronger-than-expected foreign currency inflows.

"It will not be correct to call it a U-turn; it is rather a calibration," Malhotra said in an interview with the Financial Express.

He noted that his earlier statement that there was "as of now" no proposal to close the facility early reflected the situation at that time, which was still evolving.

The RBI expects the three foreign currency measures-FCNR(B), overseas foreign currency borrowings (OFCBs) and external commerc...