RBI's early FCNR window closure leaves banks, NRI investors scrambling

The Reserve Bank of India is the central bank that makes money rules for the country.

It had opened a special window for a type of savings account used by people from India who live abroad.

These accounts are called FCNR deposits, and they hold foreign currency.

The RBI decided to close this window sooner than anyone expected.

Banks and the people who put money into these accounts were surprised and had to rush to make new plans.

A treasury official said the RBI had a certain number in mind for how much money it wanted to receive.

Once that number was reached, the RBI closed the window.

The official said the RBI never told anyone that this could happen.

If the RBI had warned the market, people would have understood that the scheme could close based on how much money came in.

Now banks and NRI investors are upset because the window closed without any warning.