NRIs eye dollar deposits as India’s FCNR scheme revives 2013 playbook
Dubai: Every investment opportunity comes with a trade-off. At one end of the spectrum sit traditional bank deposits, valued for safety, liquidity and capital preservation. At the other end sit equities, private markets and alternative investments, where higher returns often come with higher volatility. For years, investors have…
Dubai: Investors are flocking to a special Foreign Currency Non-Resident (Bank) deposit scheme in India, reminiscent of a successful initiative from 2013. The Reserve Bank of India has revived the FCNR(B) deposit mobilisation programme, offering attractive yields to Non-Resident Indians (NRIs), primarily in the UAE and the wider GCC region.
India's dependence on US dollar inflows for crude oil, gold and other imports has heightened the need to manage dollar outflows. With global markets facing geopolitical tensions, rising interest rates, and concerns over inflation and energy markets, the FCNR(B) programme is seen as a way to attract foreign currency capital and support the rupee.
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