India need not worry about FCNR (B) repayment: World Bank’s Neelkanth Mishra
World Bank Executive Director Neelkanth Mishra said India need not worry about repaying FCNR(B) deposits at maturity, as they can be rolled over if global financing conditions remain tight. He described the deposits as relatively cheap capital and called India’s external debt position healthy
- Why it matters
- India faces large FCNR(B) deposits coming due; the statement suggests the central bank has flexibility to refinance rather than drain reserves, easing near-term external financing pressure.
- Most affected
- India's foreign exchange reserves and external account — Potential refinancing option reduces immediate repayment burden if global conditions tighten.
- Likely next
- Whether India's central bank actually rolls over maturing FCNR(B) deposits when they reach maturity, or repays them in full.
Also reported by: NDTV