RBI's $56.8 billion forex drive: How diaspora deposits reshape India's currency risk and balance sheet

India's special forex package has successfully garnered over fifty-six billion dollars in deposits, surpassing expectations. This increased inflow has prompted an extension of its deadline, ushering in a new era of currency risk for the central bank. Unlike previous models, banks now focus more on leveraging their assets than merely banking on deposit spreads, ensuring that the impact of these inflows will extend beyond the current deposit frame.