RBI Governor Defends Early Closure of FCNR(B) Swap Window

RBI Governor Sanjay Malhotra defended the central bank's decision to close the FCNR(B) swap window early, describing the move as a necessary 'calibration' of liquidity management.

The closure impacts banks that utilized the window to manage dollar inflows, with analysts noting that maturing deposits could now pose a refinancing test for private lenders.

SBI Research projects that despite the window's closure, India's Balance of Payments (BoP) outlook remains strong with a surplus exceeding $50 billion and a Current Account Deficit (CAD) estimated at 1% for FY27.