Why RBI Wants NRI Dollars: Inside the $17 billion FCNR(B) deposit surge after falling to under $1 billion

RBI introduced a scheme to attract NRI deposits by permitting Indian banks to offer higher interest rates on FCNR(B) deposits.

FCNR(B) deposits surged to $17 billion after falling to under $1 billion, driven by the RBI's policy change.

The scheme addresses concerns over Indian Rupee depreciation against the US Dollar by allowing higher rates on foreign currency deposits.