RBI's FCNR(B) rule 'data-driven' or policy U-turn?
Reserve Bank of India Governor Sanjay Malhotra explained that advancing the closure of the FCNR(B) deposit scheme was a data-driven decision, not a U-turn. In an interview, he emphasized that it demonstrated the central bank's flexibility and dependability on data. Malhotra defended the decision as a well-thought-out and prudent response to evolving conditions.
The announcement occurred two weeks after the Monetary Policy Committee meeting, where the governor ruled out an early closure. The RBI expects at least $80 billion to attract to India's balance sheet through FCNR(B), overseas foreign currency borrowings, and external commercial borrowings. The special window aimed to encourage durable foreign currency inflows and strengthen the external sector.
Written by urgent.news from The Economic Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
