Public Sector Undertakings (PSUs) in India have formally requested the Reserve Bank of India (RBI) to extend its concessional dollar-rupee swap window for External Commercial Borrowings (ECBs) by three months, until March 2027.
The industry body argues that the extension is critical to sustaining foreign borrowing flows, boosting FCNR(B) deposits, and funding ongoing capital expenditure plans.
The appeal highlights the continued reliance of Indian state-owned enterprises on regulated access to foreign currency liquidity.
By maintaining the concessional swap facility, the RBI would allow PSUs to hedge currency risk at favorable rates, reducing the cost of servicing external debt.
This mechanism has become a key tool for managing balance sheets in an environment where global interest rates remain elevated and domestic currency volatility persists.
Market participants view the request as a signal of ongoing pressure on corporate liquidity.
While the RBI has not yet responded, previous extensions of similar facilities have been granted to support infrastructure spending and stabilize foreign exchange inflows.