The Reserve Bank of India cleared a scheme allowing banks to lend against foreign‑currency deposits raised from overseas citizens. By marking a lien on these deposits and issuing letters of credit, lenders can extend credit at leverage that may reach double‑digit multiples. Officials say the move targets the 35‑million‑strong diaspora to shore up foreign‑exchange buffers amid heightened geopolitical risk.

Banks are advertising guaranteed returns above 7.1% on dollar deposits, with some promotions promising leveraged rates exceeding 10%. CSB Bank’s treasury head Alok Singh said lenders could offer up to 9 times leverage, a level he believes will attract sizable dollar inflows. Estimates suggest the program could pull in as much as $80 billion before September.

The RBI also introduced a concessional forex‑swap facility and hedging‑cost support for banks raising three‑to five‑year deposits through Sept. 30. By reviving a playbook used in the 2013 taper tantrum, authorities hope to add roughly $50 billion to the $155 billion remittance flow recorded in FY‑26, pushing total foreign inflows toward $200 billion this year.

Investors watching the rupee’s depreciation see the scheme as a direct channel to capture higher yields while supporting India’s balance sheet. The leverage feature differentiates this offering from standard NRE accounts, potentially drawing funds from Gulf and Western economies that now outpace traditional GCC sources. The RBI’s aggressive stance underscores a broader strategy to counter slowing capital inflows.