Banks Collect Over $25bn From Special Dollar Swap Window: RBI

New Delhi: The Reserve Bank of India on Monday said about $25 billion has been received from special concessional swap windows for deposits by non-resident Indians and overseas foreign currency borrowings by banks.

It would have crossed $25 billion as on date, RBI deputy governor H R Khan said on the sidelines of an event organized by the National Housing Bank.

The RBI announced the swap windows for foreign currency non-resident (bank) deposits and overseas borrowings by banks on September 4, after the rupee declined about 30 per cent against the dollar between April and August. The facility is open till November 30.

The special window allows banks to swap fresh FCNR (B) dollar funds, mobilized for a minimum tenor of three years, at a fixed rate of 3.5 per cent per annum.

The RBI also allowed banks to borrow up to 100 per cent of their tier-I capital from overseas, which can be swapped with the central bank at a concessional rate of 100 basis points below the rate prevailing in the market.

Khan said the RBI had recently clarified that banks can get disbursement from multilateral agencies till December 31.

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