FCNR Deposits Could Bring USD 70-80 Billion Into India

Non-Resident Indians (NRIs) could play a significant role in strengthening India's external financial position through increased participation in Foreign Currency Non-Resident (FCNR) deposits, according to a PTI report. The Reserve Bank of India (RBI) has allowed banks to offer higher interest rates on FCNR deposits for a limited period.

The move is aimed at supporting foreign exchange reserves and the rupee amid global uncertainties, including tensions in West Asia. Industry experts believe the scheme has the potential to attract substantial foreign currency inflows into the country.

FCNR Deposits Could Generate USD 70-80 Billion Inflows

Sanjay Gattani, Chairman of the ICAI Singapore Chapter, said NRIs have the potential to generate USD 70-80 billion in foreign currency inflows into India through the FCNR initiative. He noted that the estimate was also discussed during a global webinar organised by the Singapore Chapter of the Institute of Chartered Accountants of India (ICAI) along with the ICAI International Affairs Committee and its overseas chapters.

According to Gattani, such inflows could significantly strengthen India's external financial position. He also stated that the initiative provides overseas Indians with an opportunity to contribute directly to India's economic development.

What Is the FCNR Deposit Scheme?

The Foreign Currency Non-Resident (FCNR) scheme allows NRIs and Persons of Indian Origin (PIOs) to place deposits in Indian banks using major foreign currencies. Unlike conventional fixed deposits in India, the funds remain denominated in foreign currency rather than being converted into rupees.

This structure enables depositors to maintain exposure to their chosen foreign currency while earning interest. The scheme is designed to provide a secure avenue for overseas Indians to manage and grow their foreign earnings.

RBI Allows Higher Interest Rates on FCNR Deposits

The RBI has permitted banks to offer higher interest rates on FCNR deposits for a limited period. The measure forms part of a broader strategy to strengthen foreign exchange reserves and support currency stability.

According to Gattani, around USD 10 billion has already been mobilised under the initiative. He added that the window for participating in the programme remains open until September 30, 2026.

Global Webinar Highlights Investor Interest in FCNR Opportunity

A global webinar held on July 15, 2026, attracted nearly 1,800 participants from different parts of the world. Attendees included chartered accountants, NRIs, accredited investors, business leaders, family offices and finance professionals.

The event was organised to familiarise overseas Indians with the recently announced FCNR opportunity and its potential benefits. Gattani said the investment capacity of participants, combined with leverage available through FCNR deposits, indicated the webinar alone could facilitate investment commitments exceeding USD 2 billion.

Read More: India Approves 8.25% EPF Interest Rate for FY26.

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Conclusion

The FCNR initiative has emerged as a notable avenue for attracting foreign currency inflows into India. Experts associated with the programme believe it could mobilise between USD 70 billion and USD 80 billion from NRIs if participation remains strong.

The RBI's decision to allow higher interest rates has added momentum to the scheme during a period of global economic uncertainty. With the programme remaining open until September 30, 2026, it continues to be closely watched by investors and policymakers alike.

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