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India Halts Early Closure of Diaspora Deposit Scheme

Bloomberg Markets •
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India’s central bank says it will not end the foreign‑exchange deposit scheme early, which targets the 35‑million‑strong diaspora. The program runs until end‑September and the RBI expects robust inflows throughout.

The Reserve Bank of India (RBI) confirmed that the initiative, created to channel overseas savings into the domestic economy, stays open for the full scheduled period. No premature shutdown is being considered despite market speculation about possible early closure.

Analysts note that the scheme supports foreign‑exchange stability and funds for infrastructure projects. RBI Governor Shaktikanta Das emphasized that current flow trends indicate the program is performing as intended, with deposits arriving steadily.

Market participants are advised to monitor upcoming data releases for updates on deposit volumes and any future policy adjustments related to the diaspora deposit window. The RBI may revisit the scheme only after the end‑September deadline.