Here's a quick explanation of the RBI Swap that has recently been announced. First, the background.
Things have been a little crazy on the credit growth front as the demand for rupees has soared. With an NBFC crisis and an economy looking to grow with low inflation, we have seen demand for credit increase in the last few months. Credit growth is at 15% now.
What's driving the demand? Many things, really. While we speak of the economy slowing down, in reality, bank credit requirements have been going up. And we can see that in multiple areas. Demand . . .