NRIs Have Opportunity to Invest Billions in India through FCNR Deposits
Singapore, July 17 – Non-Resident Indians (NRIs) are expected to bring in between USD 70-80 billion to India through the Foreign Currency Non-Resident (FCNR) initiative. This program allows NRIs to invest their overseas earnings in Indian banks at attractive interest rates for a limited time.
The potential of this investment was highlighted during a global webinar hosted by the Singapore Chapter of the Institute of Chartered Accountants of India (ICAI) on July 15. This event brought together nearly 1,800 participants from around the world, including accountants, investors, business leaders, and finance professionals.
The FCNR scheme enables NRIs and Persons of Indian Origin (PIOs) to safely deposit their money in foreign currencies, which remains in its original form rather than being converted to Indian Rupees. The Reserve Bank of India (RBI) has allowed banks to offer higher interest rates on these deposits to boost the country’s forex reserves and stabilize the economy during challenging times.
According to Sanjay Gattani, Chairman of the ICAI Singapore Chapter, about USD 10 billion has already been raised through the FCNR initiative, which will continue until September 30, 2026. He noted that if successful, this initiative could significantly improve India’s external financial status while allowing NRIs to play a vital role in the country’s development.
Gattani emphasized that the trust shown by the global Indian community in India’s economic prospects reflects their willingness to invest, with the webinar alone potentially generating over USD 2 billion in commitments.
During the session, leaders from major banks like HDFC Bank, HSBC, and State Bank of India elaborated on the FCNR framework, outlining the investment procedures, regulatory requirements, and tax implications. The engaging discussions aimed to clarify any questions investors might have about the scheme.
Kushal Jaju, Vice-Chairman of the ICAI Singapore Chapter, mentioned that the interactive nature of the webinar helped participants better understand how to invest under the FCNR initiative.
Overall, speakers agreed that this FCNR initiative is a rare opportunity for the Indian diaspora to contribute to India’s growth while benefiting from a promising investment option. The initiative not only aims to enhance India’s forex reserves but also strives to instill confidence in the country’s economic stability.
