RBI bought a net of $4.6 billion in September to meet FCNR(B) redemptions

MUMBAI: The Reserve Bank of India made a net purchase of $ 4.6 billion from the sport market in September to meet the redemption requirement of FCNR(B) deposits, a data release in the Reserve Bank's monthly Bulletin said.

The central bank bought $ 9 billion and sold $4.4 billion during the month.This is among the higher side intervention by the central bank in the spot market.

Besides it also made forward purchases worth around $4.8 billion. The Reserve Bank had floated a special FCNR(B) deposits in September 2013 to calm the rupee through which it had raised close to $29 billion. It may be recalled that the rupee had touched a low of close to Rs 68 to the dollar in September 2013. A portion of these deposits came up for maturity during the month.

There have been apprehensions that the redemption pressure of these deposits could create a foreign exchange crunch putting pressure on both value of the rupee and liquidity in the markets.