‘You’re only buying time’: Shankar Sharma says RBI’s FCNR(B) plan will fund FII exits

Shankar Sharma criticizes RBI's revived FCNR(B) deposit scheme, calling it a temporary fix that will fund FII exits.

He argues the scheme creates liabilities without strengthening India's external position.

The FCNR(B) plan allows banks to raise foreign currency deposits, which can be used to finance foreign investor outflows.

Sharma warns that the approach only buys time and does not address underlying economic vulnerabilities.