Indian banks offer 7.1% to attract $50bn in NRI deposits
Indian banks are rolling out some pretty tempting offers for nonresident Indians (NRIs), aiming to pull in over $50 billion through foreign currency deposits by September 2026.
With interest rates as high as 7.1% on five-year dollar accounts, the goal is to boost India's foreign exchange reserves and keep the rupee steady, especially after remittances topped $155 billion in FY 2025-26.
RBI hedging support keeps deposits tax-free
Banks are focusing their marketing on big NRI hotspots like Dubai, London, and Singapore, using everything from social media ads to airport billboards.
Smaller banks are offering the highest rates (up to 7.1%), while bigger ones go up to 6%.
Thanks to support from the Reserve Bank of India covering hedging costs, these deposits stay low-risk and tax-free, making them a pretty appealing option for NRIs right now.
Analysts say this wave of interest could even beat that $50 billion target.