Dipping NRI interest

Print edition : November 28, 2014

The RBI lheadquarters in Mumbai. In September-November 2013, the RBI offered banks a special swap scheme for their FCNR deposits at an interest rate of 3.5 per cent a year, in essence allowing banks to earn a margin on these deposits. Photo: Bloomberg

S.S. Tarapore, former Deputy Governor of the RBI, said the swap exposed the central bank to “losses of an estimated Rs.60,000 crore”. Photo: Kamal Narang

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