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Informist, Friday, Jul. 10, 2026

 

--Source: Sitharaman  to discuss progress of FCNR(B) deposits with PSU bks Mon 

--Source: Sitharaman to discuss overseas borrowing with PSU bank heads Mon 

 

NEW DELHI – Finance Minister Nirmala Sitharaman will meet officials from all public sector banks and financial institutions on Monday to discuss and take stock of progress under the Reserve Bank of India's twin moves announced last month to help shore up foreign capital. Sitharaman will discuss the RBI's swap facility to raise fresh foreign currency non-resident bank deposits, and the concessional dollar-rupee forex swap facility for external commercial borrowings for public sector undertakings, an official with direct knowledge of the matter said. 

 

The meeting will be held in Kartavya Bhawan at 1130 IST, the official said. 

 

In June, the RBI and the government had announced a slew of foreign capital measures at a time when the rupee had come under immense pressure due to a surge in crude oil prices and strong foreign capital outflows due to the onset of war in West Asia at the end of February. On Jun. 5, RBI Governor Sanjay Malhotra announced a facility of concessional foreign exchange swap till Sept. 30 to incentivise external commercial borrowings by public sector undertakings. He also introduced a facility to bear the full hedging cost for banks raising fresh three- to five-year foreign currency non-resident deposits till Sept. 30.

 

This mechanism was last deployed in 2013, when then RBI governor Raghuram Rajan had announced an FCNR deposit window to attract inflows. The scheme, under which the RBI had swapped dollars raised by banks via FCNR deposits at concessional rates, successfully mobilised about $26 billion, helping stem the rupee's fall, which was then reeling under the 'Taper Tantrum'.

 

During Jan-May, foreign portfolio investors pulled out $24.67 billion from Indian markets, over triple the $7.6 billion pulled out in the corresponding period last year. Inflows improved following the government's move and totalled $2.69 billion in June, higher than the $2.38 billion inflow in June last year. The rupee had also depreciated to a record low of 96.96 in May and since then, has recovered slightly, closing at 95.33 on Friday.  End

 

US$1 = INR 95.33

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

 

Reported by Priyasmita Dutta 

Edited by Avishek Dutta

 

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