INDIA FOREX RESERVES
Hudco mulls $1 billion foreign debt under RBI forex swap facility
Hudco aims to secure one billion dollars in foreign debt. This will be achieved through the Reserve Bank of India's concessional forex swap facility. The company is engaging with international entities for this fundraising. This move supports Hudco's lending and business growth requirements for the current financial year.
Explained: Why RBI’s FCNR(B) and ECB swap window could be a game changer for banks
RBI’s FCNR(B) and ECB swap windows aim to boost liquidity, stabilise the rupee and ease funding costs for banks. Attractive returns for NRIs and lower hedging costs for lenders create a win-win. Strong inflows could support credit growth, margins and offset persistent FPI outflows from Indian banking stocks.
FCNR(B): Revisiting a proven crisis management tool
Facing renewed external sector pressures, the RBI has revived a version of the FCNR(B) deposit framework to attract foreign currency inflows and support the rupee. While effective for near-term stability, experts say long-term resilience requires reducing structural vulnerabilities and import dependence.
Bringing in US dollars: RBI flags off FCNR(B) chase, pushes banks to go all out for forex inflows
In an ambitious bid to enhance India's foreign currency reserves, the Reserve Bank of India is urging banks to ramp up their efforts in attracting foreign currency non-resident deposits (FCNR(B)). By rolling out a series of enticing incentives for these deposits, the central bank aims to bolster dollar inflows, which will ultimately fortify the stability of the Indian rupee.
Indian rupee also gains big against the US dollar
In a remarkable turn of events on Friday, the Indian rupee surged against the US dollar, largely due to a significant decrease in crude oil prices worldwide. Investor confidence was further lifted by President Trump’s remarks hinting at a potential resolution to the conflict with Iran. The currency settled at 95.
RBI pushes banks to bring more dollars home
The push comes amid RBI measures to incentivise foreign currency inflows, including swap facilities and hedging cost support for FCNR(B) deposits, aimed at strengthening forex reserves and easing pressures on the rupee. The rupee depreciated nearly 11% last fiscal year and touched a record low of 96.96 against the US dollar in May. It closed at 95.11 on Friday.
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India's forex reserves drop $711 million to $681.610 billion, RBI data shows
India's foreign exchange reserves saw a dip of $711 million, settling at $681.610 billion by June 5. This decline was primarily driven by a significant drop in foreign currency assets, which fell by $2.704 billion. However, the value of gold reserves experienced an increase of $1.975 billion during the same period.
Asia’s currency fight moves offshore as central banks push back
Asian central banks are intensifying efforts to curb offshore forex speculation as external pressures like high oil prices and a strong dollar weaken regional currencies. Policymakers are increasing oversight of offshore derivatives and tightening trading limits to stabilize currencies like the rupiah, won, rupee, and peso, which have hit record lows.
RBI cancels registration certificates of 135 NBFCs
The Reserve Bank of India has cancelled the registration of 135 non-banking finance companies. Thirteen other companies have surrendered their licenses. These actions are due to various reasons including exiting the business or ceasing to be legal entities. Many of the cancelled companies were based in West Bengal. This move impacts the financial landscape.
RBI's measures may attract USD 60-70 billion foreign capital, support rupee: India Ratings
New measures by the RBI and government aim to attract foreign capital. These steps are expected to bring in USD 60-70 billion. This influx will support the Indian rupee. Reforms also target increased foreign investor participation in government securities. These coordinated efforts strengthen India's financial standing and global market integration.
Some lenders hike rates on FX deposits for non-resident Indians
Indian banks have significantly increased interest rates on foreign currency deposits for Non-Resident Indians, with some hikes reaching 350 basis points. This move follows the Reserve Bank of India's decision to bear hedging costs for longer-term deposits, aiming to attract dollar inflows and support the rupee. Several major lenders have already announced higher rates, with more expected this week.
RBI measures likely to attract USD 55-65 billion inflows in FY27: SBI report
India anticipates USD 55-65 billion in foreign inflows this fiscal year. The Reserve Bank of India's recent measures aim to stabilize the rupee and boost the country's balance of payments. These initiatives are expected to attract more foreign capital and deepen the domestic debt market. The overall balance of payments is projected to be in surplus for FY27.
Rupee gains as oil retreat soothes, inflow expectations erode weakening bias
The Indian Rupee strengthened on Tuesday due to falling oil prices. Regulatory measures are expected to reduce India's balance of payments deficit. Asian currencies also saw gains. Brent crude prices dropped after Iran and Israel halted attacks. Elevated oil prices pose risks to India's economy.
Indian bonds draw buyers on RBI measures, softer oil
Indian government bonds saw renewed buying on Tuesday. Lower oil prices and Reserve Bank of India measures to attract dollar inflows improved sentiment. The benchmark bond yield fell. The RBI's recent policy decision focused on attracting foreign debt inflows. These measures are expected to bring significant inflows. India posted a current account surplus in the last quarter.
RBI offers concessional swaps, allows leverage for NRI deposits to drive forex inflows
The Reserve Bank of India has introduced new foreign exchange measures. These include special swap facilities to encourage state-owned companies to raise funds abroad. Banks can now offer leverage on foreign currency non-resident deposits. These initiatives aim to boost overseas fundraising and deposit mobilization for Indian entities.
RBI opens a dollar swap window to help hedge foreign borrowings
The Reserve Bank of India is introducing a dollar-rupee swap facility for banks. This move aims to help state-run firms and lenders hedge their foreign currency borrowings. The facility will be available at a fixed cost of 1.5% per annum. This initiative is expected to encourage significant inflows into the FCNR-B window.
RBI offers concessional swaps for PSUs, NRI deposits to drive forex inflows
The Reserve Bank of India has introduced new foreign exchange measures. These include offering special swap facilities to encourage state-owned companies to raise funds abroad. The RBI will also provide swap facilities for foreign currency non-resident deposits. These measures aim to support fundraising efforts and are effective immediately with specific end dates.
India's Q4 FY26 current account surplus at $7.1 bln, driven by services exports, remittances
India achieved a $7.1 billion current account surplus in the fourth quarter of the last fiscal year. This positive outcome was driven by strong service sector earnings and increased remittances from overseas workers. While a welcome surprise, this surplus was lower than the previous year's figure.
RBI ramped rupee defense to record before government bazooka
The Reserve Bank of India has reached a record $110-$115 billion in its net-short dollar book, a key tool for defending the rupee. This significant increase in forward dollar sales, particularly in offshore markets, aims to curb excessive volatility driven by factors like oil price shocks and speculative pressures.
Rupee falls 17 paise to 95.35 against US dollar in early trade
The Indian rupee weakened by 17 paise to 95.35 against the US dollar in early trade on Monday, influenced by a strong dollar and geopolitical uncertainties. Elevated Brent crude prices, following Iran's missile launches towards Israel, further dented investor sentiment and impacted the rupee's performance.
Banks to be told to step up FCNR (B) deposits
Banks will now encourage more foreign currency deposits. The Reserve Bank of India will cover all hedging costs for these deposits. This move aims to attract significant foreign currency inflows. Industry estimates suggest up to $40 billion could be raised. These measures will strengthen India's foreign exchange reserves. This will help manage rupee depreciation pressures.
India's forex reserves rise $938 million to $682 billion despite RBI's $5 billion swap
India's foreign exchange reserves saw a slight increase of $938 million, reaching $682 billion by May 29. This rise occurred despite a significant dollar-rupee swap by the Reserve Bank of India. The central bank likely sold dollars in the spot market to support the rupee. Foreign currency assets grew, while gold reserves saw a decline.
Bring back export earnings sooner
The Reserve Bank of India has shortened the time for exporters to bring back foreign earnings. This period is now nine months, down from fifteen months. This change aims to increase foreign exchange inflows into India. The move is part of broader efforts to support the country's balance of payments. Exporters must now repatriate earnings sooner after shipment.
PSUs to get concessional forex swaps to boost external borrowings
The Reserve Bank of India will introduce a special foreign exchange swap facility for public sector undertakings. This initiative aims to encourage external commercial borrowings by these entities. The facility will be available until September 30. It is expected to significantly increase dollar inflows into India. Governor Sanjay Malhotra anticipates healthy flows from this and other government measures.
RBI MPC key takeaways: Here are the major announcements by Governor Sanjay Malhotra on GDP, inflation and repo rate
RBI Monetary Policy Committe 2026 key takeaways: The Reserve Bank of India has maintained its key repo rate at 5.25%. The central bank also kept its policy stance neutral. This decision comes as India navigates a challenging global economic landscape. The RBI remains confident in India's ability to manage these global shocks. Economic growth projections for FY26 are unchanged, while FY27 sees a slight revision.
MPC Forex Level: India’s forex reserves remain healthy at $682.3 billion, says RBI Governor Sanjay Malhotra
India's foreign exchange reserves are strong at $682.3 billion. The Reserve Bank of India has used these reserves to stabilize the rupee. Despite recent declines, reserves remain sufficient for imports and external debt. Policy reforms and trade agreements are expected to boost the economy. India is well-positioned to handle global economic challenges.
India's forex reserves remain adequate, trade pacts, policy reforms to strengthen external sector, says RBI Governor
With foreign exchange reserves reaching an impressive $682.3 billion, India stands on solid economic ground. RBI Governor Sanjay Malhotra has assured that these reserves are more than sufficient. The nation's economic landscape is further brightened by recent trade deals with the UK, New Zealand, and others, while discussions continue with the US and Canada to amplify global trade relations.
Rupee rises 50 paise to 95.24 against US dollar post RBI policy decision
The rupee strengthened significantly against the US dollar, gaining 50 paise to reach 95.24 following the RBI's liberalization of FPI investment norms in government securities. This move, coupled with the central bank's assertion of robust forex reserves, boosted investor confidence. The RBI also maintained its repo rate at 5.25% and adjusted GDP and inflation projections.
RBI MPC Meeting at a Glance: Your one-stop guide for all key decisions
RBI Monetary Policy Meeting Highlights: Reserve Bank Governor Sanjay Malhotra will announce the Monetary Policy Committee's decision on Friday. The key policy rate is expected to remain unchanged at 5.25%. This pause reflects a cautious approach amid the West Asia conflict. The conflict poses risks to inflation and economic growth. The committee began its meeting on Wednesday. Retail inflation has moderated to 3.48%.
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