FCNR(B): Revisiting A Proven Crisis Management Tool

RBI Revives FCNR(B) to Bolster Rupee Amid External Pressures

In response to mounting challenges in the external sector, the Reserve Bank of India (RBI) has reinstated a modified version of the FCNR(B) deposit scheme. This initiative aims to draw in foreign currency and provide much-needed support for the struggling rupee. While the move may offer immediate relief, experts caution that sustainable stability hinges on addressing deeper structural weaknesses and curbing reliance on imports.