Indian banks seek RBI approval for GIFT City dollar scheme
Business
Indian banks are nudging the Reserve Bank of India (RBI) to let their GIFT City branches lend money that ends up as dollar deposits, a move aimed at attracting more dollars from Indians living abroad.
This push comes under a scheme offered earlier this month, which helps banks bring in foreign currency by making it cheaper and easier for expats to park their dollars back home.
GIFT City status clouds scheme eligibility
The catch? GIFT City branches operate under offshore rules and are technically treated like foreign banks, so it's unclear if they can join the scheme.
Banks say including these branches would level the playing field and could make a real difference: analysts even estimate this could pull in up to $55 billion, giving India's foreign reserves a solid boost.