The Reserve Bank of India announced on August 14 that it would close its special forex swap facility for Foreign Currency Non-Resident (Bank) deposits one month ahead of schedule, on August 31 instead of September 30. Governor Sanjay Malhotra had stated just nine days earlier that no early termination was planned, contradicting his own assurances. In just 67 days, the program attracted 52.3 billion dollars through FCNR deposits alone, plus 1.7 billion dollars from external commercial borrowing swaps and 2.8 billion dollars from overseas foreign currency borrowings, totaling approximately 56.85 billion dollars. The RBI concluded it had reached its stated mobilization target while a month remained. Swap facilities for external commercial borrowings and overseas foreign currency borrowings will remain open until year-end.
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