{
  "id": 5461373,
  "title": "RBI faces about $11 bn bill on foreign deposits plan",
  "url": "https://urgent.news/2026/09/03/rbi-faces-about-11-bn-bill-on-foreign-deposits-plan",
  "topic": "business",
  "section": "Business",
  "published": "2026-09-03T16:08:32.000Z",
  "source": {
    "name": "The Economic Times",
    "slug": "the-economic-times",
    "url": "https://economictimes.indiatimes.com/news/economy/finance/rbi-faces-about-11-billion-bill-on-foreign-deposits-plan/articleshow/133740916.cms"
  },
  "original_language": "en",
  "account": "The Reserve Bank of India (RBI) is set to face a potential $11 billion bill due to its decision to support banks in raising money through overseas deposits. This move, which aimed to stabilize the rupee, resulted in the RBI attracting $127 billion through a program called Foreign Currency Non-Resident (Bank) deposits, along with $9.15 billion from overseas foreign-currency debt and external commercial borrowings. The total inflows amounted to $136.38 billion, surpassing the RBI's initial estimate of $80 billion.\n\nTo protect banks from currency risk, the RBI agreed to a favorable swap facility estimated at 3%-3.5% annually for three to five years. This arrangement obliges the RBI to absorb the additional rupees entering the banking system when lenders swap their dollars for Indian rupees. An analysis by Emkay Global Financial Services economist Madhavi Arora suggests that the total cost of these operations could reach up to 1.2 trillion rupees ($12.7 billion) over five years.\n\nDespite the potential cost, the RBI remains unconcerned as the final bill hinges on how the dollar proceeds are invested. The country's foreign exchange reserves are expected to increase from the current $730 billion, providing a buffer to cover the raised funds. However, a reduction in the RBI's dividend to the government could pose a fiscal challenge. The central bank transferred a record 2.87 trillion rupees in May, up from 2.69 trillion rupees the previous year. To mitigate the fiscal costs, the RBI could invest the raised dollars abroad, potentially earning more in interest than the hedging expenses.",
  "summary": null,
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}