RBI Gov Says Special Forex Schemes Garnered $ 32 Billion So Far
Most of the $32 billion raised so far has come from the foreign currency non-resident deposit scheme (FCNR B deposits), Malhotra said.
Mumbai: Banks have mobilised about $32 billion under the Reserve Bank of India’s (RBI) special foreign currency deposit and borrowing schemes announced in June, the RBI governor Sanjay Malhotra said in an interview published on Monday. He said that these inflows would strengthen India's balance of payments and improve the country's external resilience.
Most of the $32 billion raised so far has come from the foreign currency non-resident deposit scheme (FCNR B deposits), Malhotra said. In addition, about $7 billion has come in as foreign portfolio investments into debt securities following tax changes.
He said the rupee is "not overvalued" and could even be considered undervalued in both nominal and real effective exchange rate terms. He highlighted a current account surplus during April-May, strong services exports, resilient remittance inflows, rising merchandise exports and improving foreign direct investment flows as indicators of the country's external sector strength.
