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Rediff.com  » Business » $34 bn collected from dollar swap windows: RBI

$34 bn collected from dollar swap windows: RBI

Source: PTI
December 02, 2013 17:22 IST
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RBIThe Reserve Bank of India on Monday said $34 billion has been mobilised from special concessional dollar swap windows opened in September for deposits by non-resident Indians and overseas foreign currency borrowings by banks.

"The two swap windows have mobilised a sum of $34 billion. “Since the RBI swap windows are now closed, going forward, any new funds raised from FCNR deposits or from banks' borrowings will flow directly into the market instead of to RBI's forex reserves," the central bank said.

The swap windows were closed on November 30.

The Reserve Bank had announced the swap windows for foreign currency non-resident (bank) deposits and overseas borrowings by banks on September 4, to shore up rupee which declined about 30

per cent against the US dollar between April and August.

One special window allowed banks to swap fresh FCNR (B) dollar funds, mobilised for a minimum tenor of three years, at a fixed rate of 3.5 per cent per annum.

RBI also allowed banks to borrow up to 100 per cent of their tier-I (equity) capital from overseas, which can be swapped with the central bank at a concessional rate of 100 basis points below the rate prevailing in the market. RBI had recently clarified that banks can get disbursement from multilateral agencies till December 31 if they get sanction letter from these institutions before November 30.

For the week ended November 22, the forex reserves rose for the third consecutive week to $286.26 billion on a healthy jump in foreign currency assets.

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