India’s finance minister urged state banks to attract overseas deposits to ease rupee pressure.

Nirmala Sitharaman called on banks to intensify outreach to the diaspora. RBI introduced schemes allowing banks to raise interest on deposits of Indians abroad, offering rates up to 7.5%. UBS estimates measures could bring $60bn extra inflows, stabilising currency.

The rupee has weakened over 6% against the dollar this year, worsened by higher oil prices from the Iran war. Reserve Bank has tightened shorting, limiting open positions and certain derivatives.

Despite efforts, oil price rebounds and inflation pressure (4.4% June) cast doubt on near‑term rupee gains. Economists predict a rate hike in August, but diaspora deposits remain a key strategy.