 "RBI to offer banks window to swap fresh FCNR(B) deposits")
In a bid to boost sentiment in the foreign exchange market, the Reserve Bank of India (RBI) has decided to offer banks a window to swap fresh foreign currency non-resident (banks) dollar funds. These are mobilised for a minimum tenor of three years and at a fixed rate of 3.5 per cent per annum.
RBI’s move follows banks’ request to consider a special concessional window to swap FCNR deposits.
RBI has also decided to raise the current overseas borrowing limit of the unimpaired tier-I capital.
The scheme will be open up to November 30. However, RBI reserves the right to close the scheme even earlier by giving due notice.
RBI’s move follows banks’ request to consider a special concessional window to swap FCNR deposits.
RBI has also decided to raise the current overseas borrowing limit of the unimpaired tier-I capital.
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“Based on requests received from banks, it has also been decided that the current overseas borrowing limit of 50 per cent of the unimpaired tier-I capital may be raised to 100 per cent and that the borrowings mobilised under this provision can be swapped with RBI at the option of the bank at a concessional rate of 100 basis points below the ongoing swap rate prevailing in the market,” said RBI.
The scheme will be open up to November 30. However, RBI reserves the right to close the scheme even earlier by giving due notice.