State Bank of India (SBI) has raised more than $1.5 billion from overseas Indians through a special foreign currency deposit facility. RBI is supporting the hedging cost on eligible three- to five-year deposits, helping banks reduce currency risk costs and offer attractive interest rates of around 7.5% in some cases. SBI is also reportedly offering up to nine times leverage, allowing eligible depositors to borrow more money overseas at a lower rate and deposit a larger amount in India to potentially earn from the difference in interest rates. Indian banks are increasing marketing and deploying relationship managers in the Middle East, Singapore and London to attract deposits from India’s 35-million-strong diaspora. The move could boost bank deposits and foreign currency inflows, as FCNR deposit flows fell to $166 million in April from $272 million a year earlier.