Indian Banks Seek RBI Nod to Use NRI Deposits for Overseas Loans
Updated
Updated · Bloomberg · Jun 11
Indian Banks Seek RBI Nod to Use NRI Deposits for Overseas Loans
3 articles · Updated · Bloomberg · Jun 11
Summary
Indian lenders have asked the Reserve Bank of India whether they can use part of non-resident Indian deposits as collateral to help clients obtain loans from foreign banks.
Those overseas loans would let NRI depositors bring additional money into India under the RBI’s latest incentive plan, potentially increasing capital inflows beyond the original deposits.
The request centers on whether banks can legally pledge a portion of the NRI funds they already collect, with the discussions still private and no RBI decision disclosed.
If approved, the structure would give banks a new channel to attract foreign currency-linked inflows at a time India is looking to draw in more overseas capital.