Indian central bank’s capital-flow measures draw nearly $41 billion

MUMBAI: Steps by India’s central bank to draw more capital flows into the country and support the rupee have brought in $40. 81 billion, according to data released on Saturday. The Reserve Bank of India in June announced a series of foreign exchange measures, including concessional hedging facilities and swap arrangements, to encourage overseas fundraising by state-run firms, banks and through foreign currency non-resident deposits. Here are the details of the inflows so far: The RBI said it received $36. 7 billion via Foreign Currency Non-Resident deposits raised by banks. Lenders are permitted to swap these deposits with the central bank under a zero-cost hedging facility open until the end of September. Indian central bank’s FX forward book shrinks slightly to $103. 3 billion It said $1. 5 billion had been raised via swap facilities for External Commercial Borrowings and $2. 57 billion through Overseas Foreign Currency Borrowings undertaken by authorised lenders. This window is open until the end of the year. SBI Economic Research expects $65 billion to $70 billion in FCNR deposits and inflows from both schemes at $80 billion to $85 billion.

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