What changed
RBI launched a new USD-INR swap facility for scheduled banks (excluding RRBs) to boost incremental PCFC disbursements. The facility is available from January 21 to June 28, 2013, for 3 or 6 month tenors. Banks can swap dollars up to their eligible limit, which is based on incremental PCFC since November 30, 2012.
What it means for you
This swap gives banks a cheaper source of rupee liquidity tied to export credit growth, encouraging them to expand foreign currency lending to exporters. Banks must carefully track incremental PCFC and manage swap limits, as RBI may adjust limits based on utilization. The facility is operationally managed by RBI's Financial Markets Department in Mumbai.
What you must do
- Calculate your bank's incremental PCFC disbursed since November 30, 2012, to determine eligible swap limit.
- Submit a signed declaration to RBI confirming actual incremental PCFC disbursement when requesting the swap.
- Contact RBI's Financial Markets Department via email with swap request, amount, tenor (3 or 6 months), and declaration.
- For refinance, approach RBI's Regional Office in Mumbai with promissory note and declaration of swap availed.
Who it affects
All scheduled banks (excluding Regional Rural Banks), Export credit departments of banks, Treasury and forex desks of banks
What is the base date for calculating incremental PCFC?
The base date is November 30, 2012. Incremental PCFC disbursed after this date counts toward your eligible swap limit.
Can we choose any tenor for the swap?
Yes, the facility offers fixed tenors of 3 months or 6 months. You must specify your choice when applying.
What happens if we don't use the full swap limit?
RBI will periodically review actual utilization and may adjust individual bank limits based on usage and other factors.