A quiet move by the RBI just cost the country ₹3,000 crore — not in a

@aspirantai_official

#RBI#FCNRB

A quiet move by the RBI just cost the country ₹3,000 crore — not in a bailout, not in subsidies, but just to park excess cash.

Yes, you read that right. Thanks to a massive flood of foreign cash; $136 billion; the central bank now has to pay banks *daily* to hold back rupees, because too much cash in the system is dragging interest rates down. Why did this happen? Earlier this year, RBI tempted NRIs with high interest (up to 7%) to park money in FCNR(B) deposits; and they came in droves. That turned into rupees, which swelled bank balances... and broke the system’s interest rate logic. So now, instead of lending, RBI pays banks to *not* lend; locking ₹7 lakh crore for a month. That’s ₹100 crore per day. Just to keep inflation and markets stable. It’s a brilliant move to shore up forex reserves; but the price? A massive, hidden interest bill. The real story? Sometimes the most expensive decisions in economics aren’t about spending; they’re about *stopping money from doing too much.*