RBI Revives FCNR(B) Swap Scheme for 3-5 Year Deposits: Fully Covers Hedging Cost to Attract $50-70 Billion

RBI Relaxes FCNR(B) and NRE Deposit Rates, Doubles PROI Equity Limits to Attract $60-70 Billion Inflows

RBI has announced a set of measures to strengthen the rupee by attracting foreign capital, including temporarily relaxing interest rate restrictions on FCNR(B) and NRE deposits, doubling investment limits for PROIs, and exempting FIIs from income tax on G-Secs. These reforms could attract $60-70 billion in foreign inflows, boosting rupee stability and deepening India's bond market.

RBI's Concessional Forex Swap Facility Mobilises $40.82 Billion by July 31, 2026

The RBI's concessional swap facility has attracted $40.82 billion in forex inflows by July 31, 2026, with FCNR(B) deposits accounting for the bulk ($36.725 billion). This facility was announced on June 5 to strengthen balance of payments and incentivize capital inflows amid global uncertainties.

RBI Proactively Assists UCBs: On-tap Licensing, Gold Loan Limits Raised, Deposits ₹6 Lakh Crore

Union Cooperation Minister Amit Shah endorsed RBI's proactive support for urban cooperative banks, including on-tap licensing and raised gold loan limits. This signals a new era of cooperation between UCBs and the central bank, crucial for the sector's growth and financial inclusion.

Govt Proposes Gold Monetisation via Jewellers: 20,000 Tonne Idle Gold, Demat Deposits, Interest Income

The government is planning a new gold monetisation scheme where jewellers, not banks, will collect physical gold deposits from households, issue demat receipts, and pay interest. This aims to unlock over 20,000 tonnes of idle gold, improve India's trade balance, and reduce import dependence — a key reform for economic stability and current account management.

India's CAD Widens to $4.2 Billion (0.5% of GDP) in Q1FY27: RBI Data Shows Higher Trade Gap

India's current account deficit (CAD) widened to $4.2 billion (0.5% of GDP) in Q1FY27 from $3.4 billion (0.4% of GDP) a year ago, driven by a sharp increase in the merchandise trade deficit. While services exports and remittances provided cushion, net FPI outflows of $9.6 billion and a decline in forex reserves by $8.1 billion signal external sector vulnerability — a key area for UPSC/Banking prelims and mains.

RBI's Forex Swap Facility Attracts $136.3 Billion, Reserves at Record $729 Billion, Liquidity Surplus Rises

The RBI's measures to boost capital flows have massively exceeded expectations, with $136.3 billion in inflows through the forex swap facility, pushing forex reserves to a record $729 billion. However, this has created a liquidity surplus of Rs 6.7 lakh crore, complicating inflation management and looming rate hike decisions. This is critical for understanding India's external stability and the RBI's monetary policy challenges.

RBI's Forex Swap Window Mobilises $72.85 Bn Inflows via FCNR(B) Deposits; Closed Aug 31

The RBI's special forex swap facility, aimed at boosting forex reserves and supporting the rupee amid pressure from the West Asia conflict and high crude oil prices, attracted $72.85 billion in fresh inflows by August 21. The overwhelming response led to its premature closure on August 31, with FCNR(B) deposits accounting for the bulk. This is a critical forex management tool for exams.

RBI FCNR(B) Swap Window Pushes Forex Reserves to Record $729.33 Billion

India's forex reserves hit an all-time high of $729.33 billion, driven by RBI's concessional FCNR(B) swap window that attracted $65.4 billion in NRI deposits. This strengthens RBI's ability to defend the rupee amid persistent foreign fund outflows and a weakening currency, marking a critical development for macroeconomic stability.