The research report put the total hedging expense over a five-year period at an estimated USD 10.5 billion. Its assessment was that this cost was unlikely to explain the RBI’s decision to end the swap facility ahead of time. That is an assessment of the possible reason, rather than confirmation of the central bank’s reasoning.

SBI Research pointed instead to the possibility that the facility had already achieved its mobilisation targets. It cited an FCNR(B) deposit balance of USD 52.3 billion on August 13. The supplied report does not identify the year for that date or state the target against which the balance was being assessed.

The key distinction is between the expense of hedging and progress in attracting deposits. SBI Research’s view favours the latter as a possible explanation for the early closure, but the information supplied does not establish a definitive cause.

The report also does not provide the original closing date, the revised closing date or further details of the RBI’s decision. Those gaps limit what can be concluded about the timing beyond SBI Research’s stated view.