With the rupee slipping past 95 per dollar and West Asian tensions keeping risk elevated, India is weighing a return to NRI-focused dollar deposit schemes. The idea echoes 2000 and 2013, when incentives helped mobilise foreign currency and stabilise sentiment. But today’s backdrop is tougher: US rates are around 3.5%, making attractive coupons costlier. Estimates suggest a 3-year deposit rate of 6.0–6.25% may be needed, with funding support of 2.75–3.0%, potentially larger than earlier programmes.
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