RBI Closes Forex Deposit Window Early After $52.3 Billion Inflow

The Reserve Bank of India has closed the FCNR(B) deposit window ahead of schedule following a massive inflow of $52.3 billion into the banking system.

Lenders are now facing increased costs to manage the promised leverage for FCNR(B) clients and the associated long-term loan swap requirements following the early closure of the facility.

The move concludes a significant period of foreign currency mobilization, with banks now adjusting their balance sheets to accommodate the high volume of deposits received during the active window.