FCNR Deposits
RBI exempts hedged FCNR deposits under swap scheme from banks' open position
This story was originally published at 20:50 IST on 23 June 2026
Register to read our real-time news.Informist, Tuesday, Jun. 23, 2026
--RBI: Bks to exempt hedged FCNR(B) deposits from open position calculation
--RBI: Bks to exempt hedged overseas borrow from open position calculation
NEW DELHI – The Reserve Bank of India has allowed banks to exclude the hedged transactions related to foreign currency non-resident deposits, external commercial borrowings, and overseas foreign currency borrowings raised under its concessional swap facility from the computation of net overnight open position.
The central bank had said on Jun. 8 that banks may exclude the "swap positions" arising out of FCNR (B) deposits, external commercial borrowings, and overseas foreign currency borrowings under its scheme from the calculation of the overnight open position. In its amendment on Tuesday, the RBI said banks can exclude positions arising from "hedged transactions" related to FCNR(B) deposits, external commercial borrowings, and overseas foreign currency borrowings, while ensuring compliance with the provisions on overnight open positions.
On Mar. 27, the central bank had directed banks to ensure that net open rupee positions in the onshore market do not exceed $100 million at the end of each business day.
The central bank had announced a slew of measures on Jun. 5 to attract foreign capital into India. Under the swap window, the RBI will cover the entire hedging cost of banks' fresh three-to-five year FCNR (B) deposits raised until Sept. 30. It is also offering a concessional hedging rate of 1.50% per annum for external commercial borrowings from public-sector undertakings and overseas foreign currency borrowings by authorised dealer banks through its swap facilities. End
US$1 = INR 94.74
Reported by Pratiksha
Edited by Saji George Titus
For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.
Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd. by NSE Data & Analytics Ltd., a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt. Ltd.
Informist Media Tel +91 (11) 4220-1000
Send comments to feedback@informistmedia.com
© Informist Media Pvt. Ltd. 2026. All rights reserved.
To read more please subscribe
Share this Story:
