RBI's swap facility unlocks $20 billion in funding

Over $20 billion mobilised through RBI’s special swap facility. (See the linked source for details.)

Source

The Hindu — Business →

Quick Revision

Prelims-testable facts

01The Reserve Bank of India's special swap facility has mobilised over $20.7 billion in foreign exchange inflows since becoming operational in June.
02The RBI's concessional swap facility is operational through Foreign Currency Non-Resident-Bank (FCNR(B)) deposits, External Commercial Borrowings (ECBs), and other instruments.
03Foreign Currency Non-Resident Deposits accounted for $17.41 billion of the total mobilised amount under the special foreign currency swap facility.
04The RBI's special forex swap window was opened last month to boost capital inflows and strengthen the country's external balance.
05Banks have mobilised $20.7 billion so far under the RBI's special forex swap window.
06The Finance Minister has called upon banks to further intensify their outreach to Non-Resident Indians (NRIs) and introduce innovative deposit products.

Trap alerts

Most people think the RBI's special swap facility is only for External Commercial Borrowings, but actually it's operational through multiple instruments including FCNR(B) deposits.
Most people think the total mobilised amount under the special foreign currency swap facility is $20 billion, but actually it's over $20.7 billion.

Mains Practice Question

Discuss the significance of the Reserve Bank of India's special swap facility in mobilising foreign exchange for the government and its agencies.

250 words

Practice this in the exam hall →

Prelims Practice MCQs

Single facteasy

Which body is responsible for managing the country's monetary policy and regulating financial institutions?

A.Ministry of Finance
B.Reserve Bank of India
C.State Bank of India
D.Indian Banks' Association

The Reserve Bank of India is the central bank responsible for managing monetary policy and regulating financial institutions, as per its mandate.

Single factmedium

What amount has been mobilised through the RBI's special swap facility?

A.$10 billion
B.$20 billion
C.$30 billion
D.$50 billion

The RBI's special swap facility has mobilised over $20 billion, providing foreign exchange to the government and its agencies.

Multiple statementsmedium

Consider the following statements regarding RBI's Special Swap Facility: 1. The RBI's special swap facility has mobilised over $10 billion. 2. The RBI's special swap facility is a scheme that mobilises foreign exchange for the government and its agencies. 3. The Reserve Bank of India is responsible for managing the country's fiscal policy. How many of the above statements are correct?

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