RBI eases NOP positions for banks amid forex support
after close1 source ↓written by the desknot a recommendation
The Reserve Bank of India has relaxed the net open position (NOP) requirements for banks, allowing exclusions for hedged transactions linked to FCNR-B deposits and external commercial borrowings (ECBs). This move aims to bolster depleting forex reserves and stabilize the rupee. Banks can now extend loans to non-residents against these deposits, enhancing liquidity and attractiveness of FCNR-B deposits. 📈
Not investment advice. For informational purposes only.