The scheme, meant to shore up forex reserves, pulled in $127 billion; 4x more than in 2013; by offering sky-high rates. But here’s the catch: those rates were subsidized by RBI, which now carries the risk if the rupee falls. Worse, the liquidity flood forced RBI to soak up rupees by selling bonds; pushing up govt borrowing costs. And since these aren’t real reserves but borrowed dollars, India has to repay them with interest. All this was done via a circular; no parliamentary debate. If RBI loses on its hedge, it eats into its surplus, which funds 8% of govt revenue. So who pays? You do. The real question isn’t whether RBI made the right call; it’s whether it owes us a clear explanation.