RBI Governor Defends Early Closure of FCNR(B) Window as Data‑Driven Calibration
· Business · financialexpress, Moneycontrol, India Today
RBI Governor Sanjay Malhotra described the early closure of the FCNR(B) window as a data‑driven ‘calibration’ aimed at maintaining market stability. The window was shut earlier than usual on Sunday evening, ending trading of foreign currency non‑resident banking accounts that had opened on Thursday. Malhotra noted that the RBI had analysed market depth, liquidity and volatility indicators before deciding to close the window. The decision follows the RBI’s earlier measures to limit short‑term foreign currency inflows and prevent liquidity squeezes. The bank has not yet issued a formal notice specifying how long the calibrated window will remain closed, leaving some market participants uncertain about future trading windows.
Why it matters
The early closure reduces liquidity for expatriate investors and firms holding FCNR(B) balances, potentially affecting their funding costs and foreign‑currency exposure.
Read the original report — financialexpress
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