The Economic Times

Free flow of FCNR(B) money: RBI to bear hedging costs on NRI FX deposits, easing banks overseas funding

The Reserve Bank of India is now covering all hedging costs for banks raising foreign currency deposits. This move aims to make these deposits more attractive to overseas depositors. Banks expect to offer higher interest rates, potentially up to 100 basis points. This initiative seeks to increase dollar inflows through banking channels and revive interest in FCNR(B) deposits.