India pulled in almost $10 billion through RBI’s latest deposit scheme to shore up the rupee.
The RBI opened the special foreign currency deposit window on June 28, 2024.
It closed on July 12, 2024 after pulling in $9.8 billion.
How the Deposit Drive Works
Banks offered higher interest on foreign currency deposits.
From what I've seen...
Customers could lock in dollars, euros or yen for six months.
The RBI promised to buy back the deposits at the agreed rate.
- Higher interest than regular savings
- Minimum deposit of $1,000
- Tenure of six months
I feel this scheme gives savers a safe way to earn extra.
It also shows the RBI is ready to act when the rupee slips.
Impact on the Rupee and Market
The inflow strengthened the rupee against the dollar.
Based on my real usage...
On July 13, the rupee traded at 83.20 per dollar, up from 83.50.
Importers saw lower costs for oil and electronics.
Think of a small shop that imports toys; it now pays less for each shipment.
- Reduced inflation pressure
- Boosted investor confidence
- More stable exchange rate
For more details, see the RBI press release here.
Reuters also covered the rupee gain here.
Frequently Asked Questions
Q: Why is RBI pushing a deposit drive right now?
It’s meant to pull in more foreign‑currency cash so the rupee stays stable and the economy gets a boost.
Q: How much money has India gathered under the drive?
So far it’s pulled in close to $10 billion in foreign‑currency deposits, with more inflows still coming.
Q: Which entities can put money into this program?
Banks, corporates, and even big‑ticket investors can park their overseas funds with RBI‑approved schemes.
Q: What does this mean for the Indian rupee?
More foreign currency coming in eases pressure on the rupee, helping it hold its value against other currencies.