Singapore, July 17: Non-Resident Indians (NRIs) could bring an estimated USD 70–80 billion in foreign currency funds into India through Foreign Currency Non-Resident (FCNR) deposits, according to financial experts, as banks continue offering attractive interest rates under a limited-period initiative.
The potential inflow was highlighted during a global webinar organised by the Singapore Chapter of the Institute of Chartered Accountants of India (ICAI) in collaboration with ICAI’s International Affairs Committee and its overseas chapters. The session focused on the opportunities available for NRIs through the recently introduced FCNR deposit initiative.
Experts believe the scheme could become a significant source of foreign currency mobilisation at a time when India is looking to strengthen its external financial position and maintain stability in the foreign exchange market.
FCNR Scheme Offers Attractive Investment Avenue for Overseas Indians
The Foreign Currency Non-Resident (FCNR) deposit scheme allows NRIs and Persons of Indian Origin (PIOs) to invest their overseas earnings in Indian banks without converting the funds into Indian rupees.
Unlike regular fixed deposits, FCNR deposits are maintained in major international currencies, helping investors avoid currency fluctuation risks while earning interest on their savings.
The Reserve Bank of India (RBI) has allowed banks to provide enhanced interest rates on FCNR deposits for a specific period. The move aims to attract foreign currency deposits, increase forex reserves and support the Indian rupee amid global economic uncertainties, including volatility linked to the West Asia situation.
$10 Billion Already Raised Under FCNR Initiative
ICAI Singapore Chapter Chairman Sanjay Gattani said that around USD 10 billion has already been mobilised through the FCNR initiative, which remains open until September 30, 2026.
He said the Indian diaspora has significant potential to increase participation in the scheme, with experts estimating that total foreign currency inflows could reach USD 70–80 billion.
“Such inflows would substantially enhance India’s external financial position while providing NRIs with an opportunity to contribute directly to the nation’s development,” Gattani said.
According to him, the initiative offers a dual advantage by strengthening India’s financial stability while creating an attractive investment option for overseas Indians.
Global Indian Community Shows Strong Interest
The ICAI webinar, conducted on July 15, witnessed participation from nearly 1,800 attendees, including chartered accountants, NRIs, investors, business leaders, family offices and finance professionals from different parts of the world.
Gattani said the strong response reflected the confidence of the global Indian community in India’s economic growth story.
He added that considering the financial capacity of participants and the opportunities available through FCNR deposits, the webinar itself had the potential to encourage investment commitments exceeding USD 2 billion.
The response, he said, demonstrated the willingness of overseas Indians to participate in India’s economic expansion through structured financial channels.
Banks Explain Investment Process and Benefits
Representatives from leading financial institutions, including HDFC Bank, HSBC and State Bank of India, participated in the webinar and provided details about the FCNR framework.
The discussions covered important aspects such as:
Deposit procedures for NRIs
Regulatory requirements
Tax considerations
Currency options
Benefits of investing through FCNR deposits
ICAI Singapore Chapter Vice-Chairman Kushal Jaju said the interactive session helped address investor concerns and provided practical guidance to those interested in exploring the scheme.
He noted that many participants sought clarity on the operational and regulatory aspects of FCNR investments.
FCNR Initiative Seen as Major Opportunity for Diaspora Investors
Gattani described the current FCNR opportunity as a rare chance for the Indian diaspora to participate in the country’s growth while securing benefits from a foreign currency investment product.
Financial experts participating in the discussion said increased FCNR participation could help India improve its foreign exchange reserves, strengthen macroeconomic stability and enhance confidence among global investors.
The initiative is expected to remain an important channel for attracting overseas capital as India continues efforts to maintain economic resilience amid changing global financial conditions.
With billions of dollars in potential inflows, FCNR deposits could emerge as a crucial bridge between India’s economic ambitions and the financial strength of its global diaspora.