The Reserve Bank of India's special USD-INR forex swap facility has mobilised $72.8 billion in foreign exchange inflows as of August 21, with FCNR(B) deposits accounting for $65.4 billion, the government said in a statement on Tuesday.
The facility, launched on June 8, covers FCNR(B) deposits, Overseas Foreign Currency Borrowings (OFCB) and External Commercial Borrowings (ECB).
The government said the response has surpassed the scale and pace of the RBI's 2013 FCNR(B) swap scheme, which raised about $26 billion over roughly three months.
The strong response prompted the RBI to advance the closure of the FCNR(B) window to August 31 from September 30.
In addition, Nomura, in its latest note, said FCNR(B) deposits rose to $65.4 billion as of August 21 from $52.3 billion on August 13, implying that $13.1 billion was raised in the past week alone.
This was significantly higher than the $15.6 billion mobilised over the previous fortnight from July 31 to August 13.
The acceleration reflects banks' rush to mobilise deposits ahead of the August 31 deadline following the RBI's surprise early closure announcement on August 14, Nomura said.
With the FCNR(B) window closing in a week, total inflows are on track to reach closer to $80 billion, Nomura said.
Including the ECB and OFCB facilities, which remain open through December 31, total forex ...
"Overall, inflows continue to surprise on the upside," Nomura said, adding that despite the early closure of the FCNR(B) swap window, the run-rate suggests total inflows are unlikely to fall short of previous optimistic estimates.
The government said the strong response reflects the confidence of the Indian diaspora in the Indian banking system and the Indian economy, while the large-scale mobilisation of non-resident deposits and institutional funding has strengthened the country's external buffers.
-Money control
The facility, launched on June 8, covers FCNR(B) deposits, Overseas Foreign Currency Borrowings (OFCB) and External Commercial Borrowings (ECB).
The government said the response has surpassed the scale and pace of the RBI's 2013 FCNR(B) swap scheme, which raised about $26 billion over roughly three months.
The strong response prompted the RBI to advance the closure of the FCNR(B) window to August 31 from September 30.
In addition, Nomura, in its latest note, said FCNR(B) deposits rose to $65.4 billion as of August 21 from $52.3 billion on August 13, implying that $13.1 billion was raised in the past week alone.
This was significantly higher than the $15.6 billion mobilised over the previous fortnight from July 31 to August 13.
The acceleration reflects banks' rush to mobilise deposits ahead of the August 31 deadline following the RBI's surprise early closure announcement on August 14, Nomura said.
With the FCNR(B) window closing in a week, total inflows are on track to reach closer to $80 billion, Nomura said.
Including the ECB and OFCB facilities, which remain open through December 31, total forex ...
"Overall, inflows continue to surprise on the upside," Nomura said, adding that despite the early closure of the FCNR(B) swap window, the run-rate suggests total inflows are unlikely to fall short of previous optimistic estimates.
The government said the strong response reflects the confidence of the Indian diaspora in the Indian banking system and the Indian economy, while the large-scale mobilisation of non-resident deposits and institutional funding has strengthened the country's external buffers.
-Money control
