The UAE is emerging as the biggest contributor to India’s special FCNR(B) deposit mobilisation drive, with bankers expecting the country to account for more than half of the total inflows. Strong interest is being linked to the large Indian expatriate base in the Gulf, along with attractive US dollar deposit rates and tax advantages tied to the product.
According to the report, bank officials believe the overall mobilisation has already crossed the $10 billion mark. That suggests the Reserve Bank of India’s special window has gained meaningful traction among non-resident Indians looking for foreign-currency deposit options while keeping funds linked to India’s banking system.
The appeal appears strongest in the UAE, where wealth flows from expatriate Indians are significant and banking relationships are well established. For many depositors, the combination of dollar returns and tax-efficient treatment has made FCNR(B) accounts stand out from other savings choices.
At the same time, the headline indicates that some in the market believe inflows could be even higher if certain bottlenecks were eased. Even so, the UAE’s role in driving the current surge underlines how central Gulf-based NRI money remains to India’s foreign-currency deposit mobilisation efforts.
