22/07/2026
When your currency starts sliding, you have three bad options. India found a fourth.
The Reserve Bank of India just pulled in $17.4 billion in six weeks - not from bond markets, not from the IMF, but from people who left the country.
Here’s the part nobody puts in the headline. Dollar deposits from NRIs are usually a sleepy product, because a bank taking dollars and lending rupees has to hedge the currency gap, and hedging costs money that eats the rate. So the RBI removed the friction: it absorbed the swap cost itself, lifted the rate ceilings, and waived the reserve requirements. Suddenly banks could offer 5.5-7% on dollar deposits - better than comparable US Treasury yields.
Relationship managers fanned out across Dubai, Singapore, Hong Kong, London.
It worked because India has something almost no other country does: 35 million people abroad, $135.4B in remittances last year, the world’s largest recipient for 25 years running. The RBI didn’t build that relationship. It rented one that took decades to form.
But borrowed money is still borrowed. The currency risk the depositor avoids doesn’t disappear - it moves onto the central bank’s balance sheet. India isn’t removing its exposure. It’s warehousing it.
Window closes September 30.
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Sources: RBI statement, 20 July 2026; Economic Survey 2025-26