Archive · 14 Aug 2026
RBI NRI Dollar Window Likely to See Around $90 Billion
India's central bank, called the RBI, opened a special savings plan to encourage Indians who live abroad to put their money into dollar deposits in Indian banks.
The plan is working very well, and the bank could receive about $90 billion.
That is a huge amount of money.
Some of the money may just be switched from older savings plans instead of being brand new money.
The RBI wants the dollars so India has a big safety cushion if the world's economy becomes uncertain.
With more dollars saved up, the RBI can better protect the value of India's currency, the rupee.
The rupee has stayed fairly steady, moving only a little from about 94 to 95.30 per dollar.
Banks are offering interest of about 7 percent on these deposits, which is why so many people want to join.
In a few years, India will have to pay interest on this money, but for now it works like insurance against tough times.
The RBI's special window for foreign currency deposits from non-resident Indians is expected to attract inflows of around $90 billion.
Estimates suggest inflows could cross $70-80 billion and move closer to the $100-billion mark, with unofficial figures indicating close to $50 billion already received.
A portion of the inflows may come from switching existing NRI deposit schemes rather than entirely fresh foreign currency, though the RBI has not disclosed the breakdown.
Banks are offering FCNR(B) deposit rates of around 7%, making dollar deposit returns almost comparable with rupee fixed-deposit rates.
The extra dollars are expected to strengthen India's foreign exchange reserves and give the RBI more room to intervene, while the rupee has stayed broadly stable at around 94 to 95.30 per dollar.
- Who
- The Reserve Bank of India (RBI), non-resident Indian (NRI) depositors, and Anindya Banerjee of Kotak Securities, who provided the inflow estimates.
- What
- A special RBI window attracting foreign currency deposits from NRIs, expected to draw around $90 billion and boost India's foreign exchange reserves.
- When
- Not specified in the article; inflows were already coming in during the special window period.
- Where
- India, where the RBI and Indian banks receive the foreign currency deposits.
- Why
- To build a dollar buffer against geopolitical and global trade uncertainties and give the RBI more scope to manage the rupee.
- Expected total inflow
- Around $90 billion
- Inflow estimate range
- $70-80 billion, moving closer to $100 billion
- Unofficial inflows received so far
- Close to $50 billion
- Deposit scheme
- FCNR(B) deposits
- Bank deposit rates offered
- Around 7%
- Rupee movement
- Around 94 to 95.30 against the dollar
- Interest outflows expected
- Over the next three to five years
- Analyst cited
- Anindya Banerjee, Head of Commodities and Currencies, Kotak Securities