The Reserve Bank of India is reaching back over a decade for inspiration. The central bank has reopened a special deposit window aimed at luring billions of dollars from Indians living abroad, borrowing a strategy it first deployed during the 2013 “taper tantrum” that rattled emerging market currencies worldwide.
The Foreign Currency Non-Resident (FCNR)(B) deposit window opened on June 8, 2026, and will accept deposits through September 30, 2026. Punjab National Bank CEO Ashok Chandra estimates the banking sector could raise between $35 billion and $40 billion through the scheme. Other participating banks project the total could stretch even higher, potentially landing between $40 billion and $60 billion.
The playbook and the pitch
The campaign is laser-focused on NRI (Non-Resident Indian) and OCI (Overseas Citizen of India) populations in the US, Canada, the UK, and Middle Eastern nations.
The bait is straightforward: competitive interest rates estimated between 5.5% and 7% on US dollar deposits. That range sits above current US Treasury yields, which makes it a genuinely attractive proposition for NRIs who might otherwise park their cash in American government bonds or savings accounts. Layer on tax advantages for eligible depositors, and the pitch gets even more compelling.
