GK and monthly revision

RBI clears loans, SBLCs against FCNR(B) deposits under swap scheme

The Reserve Bank of India (RBI) has approved the provision for banks to offer loans to non-residents and issue standby letters of credit against Foreign Currency Non-Resident (Bank) deposits under its swap facility. This regulatory change is significant as it allows Indian banks, including their overseas branches, to lend to non-residents, thereby enhancing foreign currency inflows into the country. The swap facility is limited to the principal amount of these deposits, highlighting a strategic move to bolster India's foreign exchange reserves.