Indian Banks Launch Global Drive to Attract $50 Billion from NRIs

Indian banks have launched a global campaign to attract more than $50 billion in deposits from non-resident Indians (NRIs), as policymakers seek to strengthen the country’s foreign exchange reserves and support the rupee. Lenders are offering returns of up to 7.1% on Foreign Currency Non-Resident (Bank) [FCNR(B)] deposits and are actively targeting overseas Indians through relationship managers, digital campaigns, and advertisements across major expatriate hubs such as Dubai, Singapore, and London.

The initiative follows a recent move by the Reserve Bank of India (RBI) to absorb hedging costs incurred by banks raising foreign currency deposits overseas and bringing them into India before September 30. The measure has enabled banks to offer more attractive rates, prompting strong interest among NRIs. Industry experts believe the scheme could mobilize over $50 billion, reviving a strategy last used during the 2013 taper tantrum when India successfully attracted around $34 billion to stabilize the rupee.

Banks including HDFC Bank, Kotak Mahindra Bank, HSBC, and AU Small Finance Bank have intensified their outreach efforts, promoting FCNR(B) deposits as a stable, tax-efficient investment option amid volatility in global markets. While the scheme is expected to provide a significant boost to foreign currency inflows, economists caution that sustaining remittance growth over the long term will depend largely on global economic conditions, labor markets, and immigration policies in major developed economies.

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