The Reserve Bank of India (RBI) has received $17.5 billion under the special concessional window for swapping Foreign Currency Non-Resident (Bank) deposits and overseas foreign currency borrowings.
The special window allows banks to swap fresh FCNR (B) dollar funds, mobilised for a minimum tenor of three years and above , at a fixed rate of 3.5 per cent per annum for the tenor of the deposit.
The central bank also allowed banks to borrow up to 100 per cent of tier-I capital from overseas, which can be swapped with the central bank at a concessional rate of 100 basis points below the ongoing swap rate prevailing in the market.
The window will remain open till November 30.
RBI Governor Raghuram Rajan had announced these schemes on September 4 in order to stabilise the depreciating rupee, which had fallen to a historic low of 68.80 against the dollar on August 28. The rupee fell over 25 per cent between April and August.
The rupee has gained nearly 11 per cent since then on the back of higher dollar inflows and other measures taken by the RBI and the Government.
On November 6, the RBI said it had received $15.2 billion from the special concessional window.
beena.parmar@thehindu.co.in