The Economic Times

FCNR-B deposits: Economic benefits outweigh hedging costs, says Sanjay Malhotra

The RBI had introduced the special USD-INR forex swap facility on June 8, 2026, as part of efforts to strengthen foreign exchange reserves and support balance of payments conditions. The facility allowed banks to offer higher interest rates on FCNR(B) deposits by transferring the currency hedging cost to the central bank.