Initiative aims to boost participation in RBI’s foreign currency deposit scheme and strengthen India’s forex reserves
First Abu Dhabi Bank (FAB), the United Arab Emirates’ largest lender, has launched a financing programme of up to $1.5 billion to support Indian expatriates investing in the Reserve Bank of India’s (RBI) special foreign currency deposit scheme, marking one of the largest overseas banking initiatives aimed at non-resident Indians (NRIs).
The programme enables eligible NRIs to leverage their investments through financing backed by standby letters of credit, allowing them to place larger deposits under the RBI’s foreign currency non-resident (bank) [FCNR(B)] deposit scheme. The move is intended to encourage greater inflows of foreign currency into India while offering expatriates an opportunity to maximise returns on their deposits.
The initiative comes as the RBI continues efforts to attract overseas funds and strengthen India’s foreign exchange reserves through a temporary incentive window introduced for banks. According to recent data, Indian banks have already mobilised more than $20 billion under the scheme, with FCNR(B) deposits accounting for the largest share of inflows. Analysts believe the overall programme could eventually attract as much as $50 billion in deposits if participation remains strong.
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FAB said the programme reflects the growing financial links between the UAE and India, home to one of the world’s largest Indian expatriate communities
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The bank has maintained a long-standing presence in India and views the country as a key market within its West-East Corridor strategy, supporting trade, investment and cross-border financial services
The announcement also highlights the deepening economic partnership between India and the UAE, underpinned by expanding trade and investment ties. Financial institutions from both countries have increasingly introduced products designed to facilitate cross-border banking, remittances and investments for the Indian diaspora.
The latest offering is expected to provide additional momentum to India’s efforts to attract foreign currency deposits while giving NRIs greater flexibility in managing their overseas savings.
