SynopsisThe Reserve Bank of India is stepping in to boost dollar inflows. It will cover the full hedging cost for banks attracting foreign currency non-resident deposits. This incentive applies to new deposits with three to five-year tenures. The move aims to encourage banks to bring more foreign currency into the country. This initiative is in effect until September 30.AgenciesKolkata: The Reserve Bank of India has decided to bear the hedging cost of mobilising foreign currency denominated non-resident deposits till September 30 to incentivise banks to attract dollar inflows.Banks raise foreign currency non resident (bank) deposits and convert the proceeds to local currency to lend domestically. For this, banks need to swap those funds.The flow into FCNR(B) deposits plunged 87% in FY26 to $946 million from $7.076 billion in the preceding fiscal. The central bank on Friday said that it would provide banks a concessional swap facility covering the full hedging cost on fresh FCNR(B) deposit mobilisation with three to five years tenure. (Join our ETNRI WhatsApp channel for all the latest updates)...moreElevate your knowledge and leadership skills at a cost cheaper than your daily tea.Subscribe Now