Some Indian lenders have asked the Reserve Bank of India if they can help individuals access loans from overseas banks to bring in more capital under a new plan, according to people familiar with the matter, potentially amplifying inflows into the country.

The lenders sought clarity from the Reserve Bank of India if they can use a portion of deposits collected from non-resident Indians as collateral, the people said, asking not to be named as discussions are private. Based on that collateral, fresh loans would be given to such depositors from foreign banks, enabling them to park more money under the central bank’s latest incentive plan, they said. 

A clarification from the RBI could potentially open the door for more capital flows into the country after economists estimated that the so-called foreign-currency non-resident (bank) deposits program could draw about $50 billion. A similar process, known as ‘marking lien’, was permitted by the RBI in 2013, and banks are also able to tap overseas leverage using a so-called letter of credit arrangement.

This would allow customers to leverage, or scale up the amount of money they would deposit under the plan, the people said. The lenders asked the central bank to produce a ‘frequently-asked-questions’ section about the program in coming days, they added. 

An RBI spokesperson did not immediately respond to an email seeking comment.

The overseas deposit program is expected to ease strain on India’s external finances as fuel imports turn costlier due to the Middle East war. Banks have started announcing sharp rate increases to lure foreign funds, offering a rate of as high as 7.1% on five-year deposits. 

Any inflows would provide a timely boost, with local shares having already seen outflows of almost $30 billion this year and India projected to post a balance of payments deficit for a record third year. The rupee has weakened 6% this year against the dollar.

The RBI has also allowed other forms of leverage that could augment inflows, details of a circular showed Monday. Other measures rolled out by Indian authorities last week to lure overseas funds include reduced taxes for foreigners buying Indian bonds and higher limits for equity purchases. The rupee gained following the announcement but remains close to a record low.

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Published on June 11, 2026