India cbank swaps $550 mln of foreign currency deposits in 3 days - source

Last Updated: Tue, Sep 17, 2013 12:10 hrs

MUMBAI, Sept 17 (Reuters) - India's central bank has swapped $550 million of foreign currency deposits raised by banks in three days, a source with familiar with the matter told Reuters.

Reserve Bank of India Governor Raghuram Rajan had offered a concessional swap rate to lenders to raise funds from overseas Indians as part of the central bank's efforts to stabilise the rupee.

To incentivise banks, the RBI also offered to swap FCNR deposits of maturities above 3 years into rupees at a fixed rate of 3.5 percent, less than half the prevailing market levels. That swap window, which became operational on Sept. 10, is available until Nov. 30. (Reporting by Neha Dasgupta; Writing by Subhadip Sircar; Editing by Anupama Dwivedi)

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