The Reserve Bank of India (RBI) has introduced a new scheme, exclusively to attract NRI investors.

The US dollar-Indian rupee swap facility for new Foreign Currency Non-Resident (Bank) deposits will be available for deposits mobilised till September 30 this year.

Authorised dealer banks are permitted to fix the deposit rates, and mobilise fresh FCNR(B) deposits for three to five years, swapping the underlying foreign currency with the RBI.

Experts feel that banks may be required to raise the rates by at least 100 basis points to get NRIs to invest funds. The new FCNR(B) deposits scheme would be successful if banks offered higher rates to investors, like hiking the interest rates to 5.5% or more.

Though India’s central bank is keen on attracting foreign currencies, the truth is foreign investors have been pulling themselves out from Indian stock markets. With the Indian rupee plunging by 5% since the beginning of the Middle East war from February, nearly $30 billion worth of shares have been dumped in 2026.

Looking ahead, a mobilisation of $50 billion could replenish reserves, besides compressing forward premiums and easing imported inflation through a firmer rupee. – Image credit: Freepik – editor@nrifocus.com