Balanced
FCNR(B), nothing magical about it
The Reserve Bank of India is prematurely closing its highly successful special FCNR(B) deposit window for the Indian diaspora, now on August 31. This facility attracted forex with sweetened rates and shielded banks from currency risk. Its early closure, initially set for September 30, stems from liquidity considerations and anticipated monetary policy adjustments. The author suggests RBI, known for using diaspora deposits during crises, should fine-tune its established crisis playbook rather than abandon it. This reflects adaptability in managing market dynamics and ensuring financial stability amidst global economic shifts.
Economic Times · ET Bureau · Aug 17, 2026 at 6:03 PM