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.









