Why is RBI paying banks' hedging bill to attract NRI deposits?

RBI will bear the hedging cost on fresh Foreign Currency Non-Resident Bank [FCNR(B)] deposits mobilised by banks till September 30. Banks typically hedge such deposits against currency fluctuations, adding to their costs. By absorbing these expenses, RBI aims to encourage banks to attract more NRI deposits, boosting foreign currency inflows and helping ease pressure on the rupee.