The RBI had also introduced special forex swaps of tenors up to three months on November 7, 2008 in order to provide flexibility to Indian banks in managing their short-term funding requirements at their overseas offices. 52.
Looking ahead, I am confident that the effects of the declines in these interest rates will steadily spread to the real economy and prices. Some may have concern that financial institutions’ retail deposit interest rates also might turn negative. Admittedly, each financial institution makes its own decision on interest rates for their depositors.