India raises $72.8 billion via overseas deposits, loans, central bank says

According to Business Recorder, the Reserve Bank of India (RBI) disclosed on Saturday that Indian banks have gathered $72.8 billion from overseas, with the amount covering money from non-resident Indians along with other loans. Of that total, $65.4 billion came from Foreign Currency Non-Resident (FCNR) deposits, while another $7.45 billion was obtained through other foreign currency borrowings. The figures were released as part of a set of steps designed to draw more money into India.

The package also lets lenders use overseas borrowings to fund loans to non-resident Indians, and the cost of such fundraising had been subsidised. Separately, the central bank will end a discounted forex swap window on August 31, a facility that helps banks hedge deposits from non-resident Indians. Both moves form part of the effort to boost inflows.