India says foreign currency deposits hit $127bn

India's central bank said banks raised $127.23 billion through a foreign currency deposit scheme as of August 31, after a campaign to draw on the savings of Indians living abroad.

The Reserve Bank of India said the money came through the foreign currency non-resident deposit scheme, which helped banks offer higher interest rates to non-resident Indians.

The RBI said inflows from external commercial borrowings and overseas foreign currency debt added $9.15 billion, taking the total to $136.377 billion.

India began the push in June to attract foreign exchange flows and ease pressure on the rupee, which had been squeezed by worries that higher oil prices linked to the Iran war would hurt external finances.

RBI Governor Sanjay Malhotra said in early August that diaspora flows were "robust" and that the central bank did not have a target in mind. The RBI later ended the dollar deposit scheme on August 31, earlier than a previous plan to close it at the end of September.

India's finance ministry said last week that the response had been strong enough for the RBI to advance the closure of the deposit window.