RBI Advances Deadline for FCNR(B) Deposits Amid Rupee Weakness

The Indian rupee opened weaker on Monday at 95.48 against the US dollar, marking a decline of 5 paise from Friday's close of 95.43.

The Reserve Bank of India (RBI) has advanced the deadline for its discounted foreign-exchange swap facility for FCNR(B) deposits by a month, citing an encouraging response and over $50 billion in forex inflows generated by non-resident Indian deposits.

Banks can now tap the zero-cost hedging facility for eligible foreign currency deposits raised up to August 31, instead of the earlier September 30 deadline. The RBI's decision may affect market sentiment due to external factors such as elevated oil prices and demand for dollars from importers.