Why the sudden rush? Because the RBI’s discounted swap facility, which made dollar borrowing cheaper for banks, is closing early; August 31, not September. Banks are now racing to lock in cheaper hedging before it’s gone. Kotak sold bonds at 5.478%; 108 bps above US Treasuries; joining a $6.95 billion spree since June. Most of this cash? It’s not for loans; it’s for funding non-resident deposits. The RBI’s move was meant to boost forex inflows... and it worked a little too well. Now, with the tap closing early, the real question is; what happens to banks’ funding costs next month? This isn’t just about bonds. It’s about how India’s banking system is quietly reshaping its debt playbook.