The Reserve Bank of India launched a campaign in June 2026 to attract foreign-currency deposits from the Indian diaspora, which includes 35 to 37 million people across more than 150 countries. The initiative centers on a facility that removes hedging costs for FCNR(B) accounts, allowing banks to offer interest rates of up to 7.5% for three- to five-year terms.
By early August 2026, the program attracted $40.8 billion. By early September, this figure reached a record $127 billion. This performance significantly exceeds the results of a similar 2013 campaign, which raised between $26 billion and $34 billion. The growth is supported by rising diaspora wealth, with remittances in FY25-26 totaling $135 billion to $155 billion.
The inflows helped the capital account record a surplus of $27.7 billion in July 2026. Despite this, the Indian rupee has declined more than 6% against the US dollar in 2026, trading at 95 to 96 per dollar. The country remains vulnerable to energy price shocks, as it imports approximately 85% of its oil.
Prime Minister Narendra Modi and Finance Minister Nirmala Sitharaman actively promoted the initiative to overseas citizens. While the deposits provide a buffer for foreign exchange reserves, they also represent dollar-denominated liabilities that will require future outflows when the accounts mature.
