NRIs can bring USD 70-80 bn into India through FCNR deposits: expert

Singapore, Jul 17 (PTI) Non-Resident Indians (NRIs) have the potential to bring USD 70-80 billion in foreign currency inflows into India through the ongoing FCNR initiative, under which banks are offering higher interest rates for a limited period, a Singapore-based chartered accountant said on Friday. The estimate was also discussed during a global webinar organised by the Singapore Chapter of the Institute of Chartered Accountants of India (ICAI) in association with the ICAI's International Affairs Committee and its 25 overseas chapters on Wednesday. The Foreign Currency Non-Resident (FCNR) scheme allows NRIs and Persons of Indian Origin (PIOs) to safely deposit and grow their overseas earnings in major foreign currencies within Indian banks. These operate like traditional fixed deposits, except the money stays in foreign currency rather than converting to Indian Rupees. The Reserve Bank of India (RBI) has permitted banks to offer higher interest rates on FCNR deposits for a limited period as part of the strategy to bolster forex reserves and support the rupee amid the West Asia crisis. "As much as USD 10 billion has been raised so far under the FCNR initiative, which is open till September 30, 2026," ICAI Singapore Chapter Chairman Sanjay Gattani told PTI. Echoing the views shared by the experts at the webinar, Gattani said under the FCNR initiative, NRIs have the potential to generate USD 70-80 billion foreign currency inflows into India under FCNR. "Such inflows would substantially enhance India's external financial position while providing NRIs with an opportunity to contribute directly to the nation's development," he said. The webinar, held on July 15, drew nearly 1,800 participants, including chartered accountants, NRIs, accredited investors, business leaders, family offices and finance professionals from across the world. Gattani said that, considering the investment capacity of participants and the leverage available through FCNR deposits, the webinar alone had the potential to facilitate investment commitments of over USD 2 billion. “This is a testament to the trust that the global Indian community continues to place in India's economic future and the power of well-curated knowledge initiatives in mobilising meaningful capital,” he said. The webinar aimed to familiarise overseas Indians with the recently announced FCNR opportunity and its potential benefits for both investors and the Indian economy. Senior representatives from HDFC Bank, HSBC and State Bank of India explained the FCNR framework, investment process, regulatory requirements, taxation aspects and the advantages available to NRIs. ICAI Singapore Chapter Vice-Chairman Kushal Jaju said the interactive session addressed a wide range of investor queries, helping participants better understand the practical aspects of investing under the scheme. Gattani said a recurring theme during the discussions was that the current FCNR initiative represents a "once-in-a-generation opportunity" for the Indian diaspora to participate in India's growth while benefiting from an attractive investment avenue. The speakers highlighted how the initiative has the potential to strengthen India's foreign exchange reserves, support macroeconomic stability and reinforce investor confidence in the Indian economy, he said. PTI GS SCY SCY