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RBI Plans Incentives for NRI Deposits to Stabilize Indian Rupee

RBI Plans Incentives for NRI Deposits to Stabilize Indian Rupee

The Reserve Bank of India (RBI) is expected to introduce incentives for Non-Resident Indian (NRI) deposits in its upcoming April monetary policy review to help stabilize the Indian Rupee. Experts suggest that the RBI may revive the foreign currency non-resident (FCNR B) deposit scheme to attract foreign deposits and address the rupee's volatility. Currently, the UAE accounts for over 40% of FCNR (B) deposits, showing a heavy reliance on the Gulf region.

NRI deposit inflows have seen a significant decline, dropping nearly 26% from April 2025 to January 2026, reaching $14.35 billion. FCNR-B flows have also decreased sharply, falling from $7.02 billion last year to just $0.94 billion in the same period, highlighting the need for measures to reverse this downward trend and stabilize the currency.

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