Over $5 billion received through swap facility: Raghuram Rajan

Oct 04 2013, 22:33 IST
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(RBI) Governor Raghuram Rajan. PTI (RBI) Governor Raghuram Rajan. PTI
SummaryRaghuram Rajan announced the opening of a swap window facility to encourage banks to lure NRI funds.

Over five billion dollars have come in through the swap facility which was launched in September to combat rupee depreciation, RBI Governor Raghuram Rajan today said.

"We have got USD 5.6 billion through swap arrangements" till date, Raghuram Rajan told reporters after a board meeting here.

He was replying to questions on initiatives taken by the RBI to combat the rupee depreciation.

Soon after taking over as RBI Governor on September 4, Raghuram Rajan announced the opening of a swap window facility to encourage banks to lure NRI funds.

Under the facility, banks are permitted to swap fresh FCNR(B) dollar funds, mobilised for a minimum tenor of three years, at a fixed rate of 3.5 per cent per annum for the tenor of the deposit.

Since end-May when the rupee was at 56.50, there has been volatility in the foreign exchange market due to global and domestic factors including sharp rise in the Current Account Deficit (CAD).

The rupee had plunged to life-time low of 68.85 against the dollar on August 28 but has recovered some ground since then. On Friday, it closed at 61.44 versus dollar.

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