RBI's New Forex Facility Could Boost Inflows and Stabilize Rupee
The Reserve Bank of India's (RBI) USD-Rupee forex swap facility has been introduced to boost foreign exchange inflows, which is expected to help stabilize the rupee and reduce travel costs. According to Mahesh Iyer, Managing Director & CEO of Thomas Cook (India) Limited, this move will allow Non-Resident Indians (NRIs) to earn interest rates of up to 7.1 per cent on long-term USD deposits.
The RBI's special facility allows banks to mobilize tax-free FCNR(B) deposits from NRIs at higher interest rates than the historical 3-4 per cent annually, which could result in higher foreign exchange inflows. This is one of several initiatives undertaken by the government through the RBI to help arrest the slide of the rupee against the dollar.
In related news, Thomas Cook (India) Limited has reported a continued growth in its digital forex business, with WhatsApp transactions rising 84 per cent YoY to over Rs 1,026 million in Q1 FY27. The company's app bookings grew nearly threefold to over 840 transactions from 223, while website bookings increased 38 per cent YoY to over 1,200.