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Economic Benefits Outweigh Hedging Costs of Foreign Currency Deposits: RBI Governor
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News18•07-10-2026, 17:45
Economic Benefits Outweigh Hedging Costs of Foreign Currency Deposits: RBI Governor
- •RBI Governor Sanjay Malhotra stated that overall economic benefits take precedence over the hedging costs borne by the central bank for FCNR(B) deposits.
- •The special forex swap facility was introduced in June to boost foreign exchange reserves and stabilise balance of payment conditions.
- •Banks successfully mobilised USD 133 billion through the special Foreign Currency Non-Resident deposit scheme by the August 31 deadline.
- •Malhotra assured that macroeconomic fundamentals and adequate forex reserves will keep repayment risks associated with FCNR-B deposits manageable.
- •Recent pressures on the current account and external flows are considered temporary by the central bank.
Key Questions Answered
RBI Governor Sanjay Malhotra stated that the overall economic benefits to the country outweigh the hedging costs borne by the central bank for the FCNR(B) deposits scheme.
Banks successfully mobilized USD 133 billion through the special Foreign Currency Non-Resident deposit scheme by its closing date of August 31, 2026.
The special USD-INR forex swap facility remains open until December 31, 2026, for External Commercial Borrowings and Overseas Foreign Currency Borrowings.
