New Delhi, Sept. 4 -- The Reserve Bank of India's latest initiative to attract foreign currency deposits has received a significantly stronger response than a similar scheme introduced in 2013, with banks mobilising more than USD 127 billion through fresh FCNR(B) deposits, according to a Bank of Baroda Research report.
The RBI launched a special swap facility in June 2026 to encourage banks to raise fresh Foreign Currency Non-Resident (Bank), or FCNR(B), deposits. Under the arrangement, banks could swap the foreign currency raised through these deposits with the central bank, while the RBI absorbed the associated hedging cost.
The move reduced a key expense for banks and improved the incentive to raise foreign currency deposits from non-r...