This, they say, would partly help the RBI take care of the maturing FCNR (B) deposits without dipping into its reserves. India has about $26 billion of FCNR (B) deposits maturing in the next two months, small portion of which has already matured. "Banks made money on the scheme and they have the dollars to repay the debt,” said a banker. Demand for dollars is expected to shoot up as the large portion of the FCNR(B) deposits will mature by the end of October. It is done by buying dollars in the forward market – the market which promises the delivery of dollars at a pre-determined rate.

Source: dna October 20, 2016 02:02 UTC