An innovative RBI scheme has sparked a $3 billion NRI deposit surge, with banks offering up to 7.5% interest to boost India’s foreign exchange reserves.
MUMBAI
Indian banks are seeing a big jump in overseas money, thanks to a clever new scheme by the Reserve Bank of India (RBI). Non-Resident Indians (NRIs) are rushing to park their savings back home, bringing in an estimated $3 billion to $4 billion so far.
Bankers are thrilled and expect this number to skyrocket to $50 billion soon. The biggest wave of money is coming from Indians living in the Gulf region. To make this happen, the RBI made a smart move last month. They promised to pay for the insurance costs that banks usually face when handling foreign money.
Even better, the central bank has removed strict rules on interest rates until September 30, 2026. This allows banks to fight for NRI accounts by offering fantastic returns. Right now, big banks are giving up to 6.5 percent interest, while smaller finance banks are offering a whopping 7.5 percent for long-term deposits.
Before these changes, banks were tied down by strict limits and could not offer such high rates. Now, they have the total freedom to give overseas Indians a much better deal.
Lenders are not sitting around either. Teams are actively reaching out to NRI communities worldwide to spread the word. This massive cash inflow is great news for India. It will help build up the nation’s foreign exchange reserves and keep the Indian rupee strong against global currencies.