Reserve Bank of India announces host of measures to attract foreign capital

The Reserve Bank of India announced a package of measures on June 14, 2026, designed to attract foreign capital and support the rupee amid sustained portfolio outflows.

The central bank expanded foreign-exchange swap windows and indicated willingness to absorb hedging costs on certain foreign-currency non-resident deposits, lowering effective funding barriers for overseas lenders and diaspora savers.

Treasury officials said the tools aim to smooth volatility rather than defend a fixed exchange-rate level.

Bankers welcomed improved swap liquidity but cautioned that global risk sentiment will still dominate net flows into Indian debt and equity markets.

 

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Sources:

https://www.thehindu.com/business/markets/fpi-exodus-continues-62800-crore-pulled-out-from-equities-in-first-fortnight-of-june/article71100454.ece

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