Collections Under RBI Dollar Swap Scheme Exceed $72.8 Billion
· Business · Times of India, Moneycontrol
Indian banks have mobilised $72.8 billion in foreign-currency funds under the Reserve Bank of India’s special swap facility as of August 21, driven by a sharp surge in forex inflows. Foreign currency non-resident bank deposits accounted for the largest share at $65.4 billion, followed by overseas foreign currency borrowings at $4.9 billion and external commercial borrowings at $2.6 billion. The pace of mobilisation accelerated significantly in August, with banks adding $32 billion in the three weeks leading up to August 21. HSBC, SBI, ICICI Bank and HDFC Bank emerged as the top mobilisers, leveraging their NRI networks to drive inflows. The strong response has prompted the central bank to bring forward the closure of the FCNR(B) mobilisation window to August 31, while corresponding swaps can be undertaken until September 11.
Why it matters
The heavy inflows have bolstered India's forex reserves by nearly $10 billion in mid-August, offering crucial stability to the rupee and currency-risk management for commercial banks.
Read the original report — Times of India
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