Story thread · 18 reports / 8 sources

Centre sees no cost pain for RBI on dollar deluge

economictimes.indiatimes.com · 11dShare

New Delhi | Mumbai: The Centre does not expect the Reserve Bank of India (RBI) to face material costs from the unprecedented $127-billion inflows through forex inflow schemes underpinned by a swap facility, people aware of the details of the dedicated plans that closed August 31 told ET.This assessment comes amid concerns the foreign currency non-resident-bank (FCNR-B) and other forex inflow programmes may have a high cost for the central bank, stemming largely from hedging and liquidity management expenses.The RBI is, however, expected to earn good returns when these record inflows are deployed in US treasuries that have seen a sharp rise in interest rates, which would offset anticipated costs for the central bank, said the people cited above, setting aside concerns by a section of economists that hedging costs could eventually crimp future central bank surplus transfers to the government.The investment yield on 52-week US Treasury bills was 4.14% a year as on August 31, 2026, they sa

First report: RBI’s Short Dollar Book Surges to Record on Diaspora Deposits — bloomberg.com, 14d