India’s central bank, the Reserve Bank of India (RBI), allows banks to extend loans using foreign-currency deposits raised under a special program designed to attract overseas funds, according to reports. The change permits lenders to provide credit backed by these foreign-currency deposits, a mechanism intended to improve banks’ participation in the scheme. Both outlets describe the step as part of broader RBI measures aimed at strengthening dollar inflows into India. By enabling banks to deploy the deposits as collateral for lending, the policy may make it easier for banks to take part in the program and potentially draw more overseas funding into the country. The reports frame the decision as supportive of inflow objectives rather than as a standalone change to lending rules. Overall, the RBI’s adjustment is presented as a way to increase the effectiveness and uptake of its foreign-funds attraction initiative by expanding how banks can use the deposits that they raise under it.
RBI allows banks to lend against foreign-currency deposits to support dollar inflows
India’s central bank, the Reserve Bank of India (RBI), allows banks to extend loans using foreign-currency deposits raised under a special program designed to attract overseas funds, according to repo...
- The RBI allows banks to lend against foreign-currency deposits raised under a special overseas-funds program.
- The policy is intended to strengthen India’s dollar (foreign-currency) inflows.
- The change is expected to increase banks’ participation in the program.
- The reported action involves using foreign-currency deposits as collateral for loans.
- Both outlets describe the measure as part of RBI steps to attract more overseas funding.
The move is part of measures aimed at strengthening dollar inflows into the country
2 months agoIndia’s central bank allowed lenders to extend loans against foreign-currency deposits raised under its special program aimed at attracting overseas funds, a move that could increase participation in the plan and boost dollar inflows.
2 months ago
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