Archive · 4 Oct 2026
Neelkanth Mishra Says FCNR Buys Time for Financing Shift
Neelkanth Mishra says the FCNR scheme has given India more time.
He calls this “duration extension.”
He says some currency-hedging arrangements that used to end after three or six months now effectively last three or five years.
Mishra says this calmer period should not be wasted.
He wants India to make deeper changes to how it pays for its current account needs.
The excerpt does not explain what specific changes he recommends.
Neelkanth Mishra said the FCNR scheme has bought a period of stability.
He described the scheme as a form of “duration extension.”
Currency-hedging forward short positions once expiring in three or six months have effectively been extended to three or five years.
Mishra said the period should be used to make structural changes to how India finances its current account usage.
The excerpt does not specify the scheme’s terms, the size of the deficit, or any proposed financing measures.
- Who
- Neelkanth Mishra
- What
- He said the FCNR scheme has bought time and urged structural changes in financing current account usage.
- Why
- Mishra said the period of stability created by the scheme should be used to make more structural financing shifts.
Use the Stability
Structural Financing Challenge
How to use the FCNR period
Use the Stability
Mishra said the period of stability bought through FCNR should be used to pursue structural changes in financing current account usage.
Structural Financing Challenge
The excerpt does not provide a contrasting view or identify specific alternative measures.
- Speaker
- Neelkanth Mishra
- Scheme
- FCNR
- Mishra's description
- A form of “duration extension”
- Previous hedge expiry periods
- Three or six months
- Extended periods cited
- Three or five years
- Proposed focus
- Structural shifts in financing current account usage