India RBI Faces About $11 Billion Bill on Foreign Deposits Plan

India's central bank offered a special deposit program targeting its diaspora that raised $127 billion, according to data released by the Reserve Bank of India. Economists calculated the program could cost the central bank approximately $10.6 billion based on interest rate differentials between the deposits and the central bank's funding costs. The Reserve Bank of India did not immediately comment on the cost projections.

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