RBI ends diaspora swap facility early after $50 billion inflows

Many people from India live and work in other countries, and these people are called the diaspora.

India's central bank, the RBI, wanted to borrow money from them.

It offered special bank accounts with high interest and promised to cover certain currency risks.

The idea worked better than expected, and more than $50 billion came in.

Because so much money arrived, the RBI decided to end the special offer one month early.

The money helps India when the price of oil goes up, because high oil prices usually weaken India's money, the rupee.

Banks even offered interest rates as high as 7.75% to attract depositors.

This move surprised some traders, who think the bond market may be affected.

However, experts say the effect on the rupee will likely be small and only last a short time.