India, July 3 -- RBI announced opening of concessional forex swap facility to BOOST PSUs to raise external commercial borrowings

The concessional swap facility provided by the RBI would lower funding costs for many government-owned financial institutions that are now likely to increase their external borrowings, S&P Global Ratings said on Thursday.

To shore up foreign capital inflow, last month, the Reserve Bank had announced the opening of a concessional forex swap facility to encourage PSUs to raise external commercial borrowings (ECBs) until September 30. Under this, RBI will offer a concessional 1.5 per cent per annum premium on fixed US dollar-Indian rupee swaps for 3-5 years for the ECBs raised by public sector companies. S&P said...