Rupee’s depreciation over the past 1.5 years is likely to prove temporary amid India’s underlying BoP strength, says Reserve Bank of India deputy governor Poonam Gupta
The Reserve Bank of India launched a special swap facility in June 2026 to attract non‑resident Indian deposits in foreign‑currency non‑resident (FCNR(B)) accounts, later closing the window on August 31, 2026. While the scheme exceeded its $50 billion target by mobilising over $127 billion, the RBI hedged only the principal amount, leaving interest‑payment risk to the banks.
This influx, driven by attractive interest rates of 6-7.5% and significant leverage incentives for non-resident Indians, occurred through the Reserve Bank of India’s concessional swap facility
10859122 Reserve Bank of India (RBI)
India's current account deficit widened marginally in the April-to-June quarter from a year ago on the back of higher commodity prices and a wider trade gap, the Reserve Bank of India said on Tuesday.
Monetary Policy Committee (MPC) unanimously decides to maintain the policy repo rate with a focus on sustainable disinflation and economic growth.
