RBI forex measures to lower banks' overseas borrowing costs by 2-2.5 per cent, aid inflows: Report

New RBI measures aim to make overseas borrowing cheaper for banks. External commercial borrowing costs may drop by up to 2.50 percent. This will help banks raise funds at lower rates and boost liquidity. Special swap facilities will also cut hedging costs. These steps are expected to strengthen India’s foreign exchange reserves and ease deposit mobilization pressures for banks.

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