India offers up to 9% leverage to NRIs to attract fresh forex inflows

AI Summary

India is encouraging foreign currency inflows from its Non-Resident Indians by offering up to 9% leverage on special foreign-currency deposits. This initiative aims to attract over $80 billion to strengthen forex reserves amid global economic uncertainties.

India is actively seeking foreign currency inflows by encouraging its diaspora to deposit funds. Banks are now permitted to offer substantial leverage on these special foreign-currency deposits, with potential returns exceeding 6% and leveraged rates above 10%. This initiative aims to bolster foreign exchange reserves amidst global economic uncertainties and has the potential to attract over $80 billion.