Consider the following statements regarding Foreign Currency Non-Resident (Bank) [FCNR(B)] deposits:1.FCNR(B) deposits must be maintained in approved foreign currencies and not in Indian Rupees.2.The exchange rate volatility risk associated with unhedged FCNR(B) deposits is borne entirely by the depositor rather than the deposit-taking bank.
The Reserve Bank of India’s bulletins frequently reference Concessional Forex Swap facilities and FCNR(B) deposit schemes primarily to achieve which of the following?
