{ “title”: “The Rupee Just Hit 95.43. ₹2 Lakh Crore Left India in 4 Months. The Fix Involves NRIs and a Tax the Government Hated.”, “date”: “2026-05-07”, “author”: “Town Post Desk”, “category”: “business”, “slug”: “rupee-95-record-low-nri-deposit-scheme-rbi-dollar-inflows-may-2026”, “description”: “The rupee crashed past 95.43 and FIIs pulled out ₹2 lakh crore in four months. The RBI is now reviving an NRI deposit scheme it spent 13 years avoiding.”, “keywords”: [ “rupee record low 95 RBI NRI dollar inflows May 2026”, “foreign investors sell 2 lakh crore india 2026”, “rbi exploring dollar inflow measures withholding tax”, “rupee 95.43 vs dollar oil prices impact india”, “FCNR-B deposit scheme 2013 revival” ], “meta_description”: “Rupee hit a record 95.43 and FIIs sold ₹2 lakh crore. RBI is reviving the FCNR(B) NRI deposit scheme — a tool it spent 13 years avoiding.”, “og_title”: “The RBI Spent 13 Years Avoiding This Tool. The Rupee at 95.43 Forced Its Hand.”, “primary_keyword”: “rupee record low 95 RBI NRI dollar inflows May 2026”, “secondary_keywords”: [ “foreign investors sell 2 lakh crore india 2026”, “rbi exploring dollar inflow measures withholding tax”, “rupee 95.43 vs dollar oil prices impact india”, “FCNR-B deposit scheme 2013 revival” ], “schema_type”: “Article”, “content”: “The RBI spent 13 years avoiding the tool it just dusted off. The rupee at a record low of 95.43, up from 92.45 in March, is why.\n\nFor the first time since 2013, India’s central bank is preparing to open a special FCNR(B) deposit window for NRIs — a crisis-era playbook last used during the taper tantrum, when then-Governor Raghuram Rajan raised $34 billion in dollar inflows to defend the rupee — after the RBI had already burned $20 billion defending the rupee in March this year with nothing to show for it. The RBI also wants to scrap the withholding tax on overseas bond investors, another lever it has resisted for years.\n\nBoth moves are about one thing: dollars. India needs them faster than it can earn them.\n\n## ₹2 Lakh Crore Walked Out the Door\n\nForeign institutional investors sold ₹1.98 lakh crore in Indian equities in just four months of 2026 — nearly matching the entire exit of 2025, building on the ₹70,000 crore FPI outflow in Q1. By May 5, the rupee had breached 95/$ for the first time. Oil touched a four-year high of $126/barrel as the US-Iran war disrupted Strait of Hormuz shipping.\n\nIndia imports 85% of its oil, and the Hormuz crisis has permanently altered India’s energy import map. Every dollar increase in crude widens the current account deficit. Every rupee fall makes the next barrel costlier. That math runs through petrol pumps, smartphone prices, and education abroad — an invisible tax most Indians won’t see itemised.\n\n## The Reluctant Toolbox\n\nThe 2013 FCNR(B) scheme worked. It also created a redemption headache for Rajan’s successor when deposits matured in 2016-17. Removing withholding tax invites the kind of hot money the RBI spent a decade keeping out. After cutting fuel excise duties in March, the government is staring at another revenue hit on top of the first.\n\nThese aren’t policy choices. They’re the last items in the drawer — at least on the currency side. The equity side has a different story.\n\n## The Quiet Counterweight\n\nDomestic institutional investors bought over ₹3 lakh crore in 2026. That’s why Sensex losing 1,600 points in two days didn’t become a full crash. India’s equity market has built itself a domestic shock absorber. The currency market doesn’t have one.\n\nOn May 7, the rupee jumped to 94.61 on hopes of a US-Iran peace deal — its best single-day gain in a month. If oil drops, the FCNR(B) window may never open. If it doesn’t, even $34 billion in NRI dollar inflows may not be enough.\n” }
business