71
Economics3h 3m ago

Competition among banks to attract foreign currency deposits from Non-Resident Indians (NRIs) has intensified after the Reserve Bank of India (RBI) announced a special dispensation aimed at boosting US dollar inflows.

Archive Window: 30 Days Left

Mumbai, Maharashtra, India

Who
Reserve Bank of India (RBI), Non-Resident Indians (NRIs), UCO Bank, DCB Bank, CSB Bank, Bandhan Bank, Karnataka Bank, ICICI Bank, Axis Bank, Federal Bank, Kotak Mahindra Bank, Punjab National Bank (PNB), IDBI Bank, YES Bank, Canara Bank, Indian Bank, Jefferies
What
Competition among banks to attract foreign currency deposits from Non-Resident Indians (NRIs) has intensified after the Reserve Bank of India (RBI) announced a special dispensation aimed at boosting US dollar inflows.
When
Fri, 12 Jun 2026 05:43:09 GMT · 3h 3m ago
Where
Mumbai, Maharashtra, India ·
Why
The RBI announced a special dispensation including exemption from CRR and SLR requirements on incremental FCNR(B) deposits and facility for the central bank to bear hedging costs, making it more attractive for banks to garner overseas funds and boost US dollar inflows.
The Frontline Impact

How this affects you

The RBI's new measures have prompted several Indian lenders to sharply raise interest rates on FCNR(B) deposits, with some offering over 7% on US dollar deposits, aiming to attract substantial foreign currency inflows, potentially between USD 35 billion and USD 70 billion.

Story chain

5 events in this thread
  1. Economics1h 40m ago
    Nikhil Gupta, India Economist at CLSA, expects the FCNR deposit scheme and ECB-related steps to bring in $30-50 billion, significantly improving India's balance of payments position.
    Open article
  2. Economics1h 40m ago
    Nikhil Gupta, India Economist at CLSA, expects the FCNR deposit scheme and ECB-related steps to bring in $30-50 billion, significantly improving India's balance of payments position.
    Open article
  3. Economics1h 40m ago
    Nikhil Gupta, India Economist at CLSA, expects the FCNR deposit scheme and ECB-related steps taken by the Reserve Bank of India (RBI) to bring in $30-50 billion, significantly improving India's balance of payments position.
    Open article
  4. Currently Reading3h 3m ago
    Competition among banks to attract foreign currency deposits from Non-Resident Indians (NRIs) has intensified after the Reserve Bank of India (RBI) announced a special dispensation aimed at boosting US dollar inflows.
  5. Economics3h 3m ago
    Competition among banks to attract foreign currency deposits from Non-Resident Indians (NRIs) has intensified after the Reserve Bank of India (RBI) announced a special dispensation aimed at boosting US dollar inflows.
    Open article

Verified Sources & Citations