Is It the best time for NRIs to transfer money to India amid sustained Rupee depreciation?
The Indian rupee crossed a historic milestone by breaching the 90-per-dollar mark on December 3, 2025. The slide means NRIs now get more rupees for every dollar remitted, enhancing the value of overseas savings sent to India.
- Dec 31, 2025,
- Updated Dec 31, 2025 6:07 PM IST
With the Indian rupee breaching the 90-per-dollar mark in December 2025 and weakening by over 7% since May, is this a good time for NRIs to transfer money to India? Given that each dollar now converts into a higher rupee value, should overseas investors consider remitting funds or deploying surplus USD savings into Indian investments, or is it better to wait for currency stability?
Advice by Anshi Shrivastava, Head - Personal Finance Training at 1 Finance
The Indian rupee touched a historic low of ₹90.02 against the US dollar on December 3, 2025. This is a 7% drop from Rs 84 levels in May, making Rupee Asia's worst-performing currency this year, according to Bloomberg.
Converting funds now locks in this favourable rate for NRIs, yielding more rupees per dollar. Key drivers of the weakness include uncertainty over US-India trade deals, a widening trade deficit, foreign investor outflows from equities, and robust dollar demand. Yet, according to the 1 Finance's India Macroeconomic Index India's fundamentals stay robust, with real GDP growth for FY26- 7.4% and for FY27- 6.6%. Therefore, we expect a recovery in 2026.
For NRIs remitting money, these appear as short-term fluctuations. While rates can swing briefly, the rupee has historically depreciated 3-4% annually against the dollar, reinforcing that staying invested generally beats trying to time the market.
Background
The sustained weakening of the rupee against the US dollar has triggered a sharp rise in overseas fund transfers by Indians, prompting banks to tighten compliance checks. As per news reports, high street lenders are now demanding more extensive documentation from high net worth individuals (HNIs), non-resident Indians (NRIs) and businesses remitting money abroad, with a growing focus on verifying the source of funds.
A news report in the Times of India stated that at least two Mumbai-based private sector banks have recently asked customers to submit CA-certified documents to validate fund origins for outward remittances. In several cases, banks have insisted that these certificates be issued only by CAs empanelled with them, adding another layer to the process. Practitioners say the scrutiny has become unusually intense, with one noting that assessing fund sources in such detail is increasingly common.
This heightened caution comes despite a well-defined regulatory framework. Under the Reserve Bank of India’s Liberalised Remittance Scheme (LRS), resident individuals can remit up to $250,000 a year for permitted purposes, using only their own funds. However, bankers are now seeking additional assurances beyond existing requirements, resulting in more paperwork for customers.
Remittances from non-resident ordinary (NRO) accounts are facing particular scrutiny. Banks are seeking clarity on the origin of balances that may have accumulated over many years, especially when accounts were redesignated following a change in residential status. In some cases, customers have been asked to furnish old salary records to establish fund provenance.
Even corporate outward payments, which are not subject to LRS limits, are drawing closer examination. Practitioners say the insistence on extra documentation and empanelled CAs marks a clear shift in banks’ approach as overseas remittances accelerate alongside the rupee’s decline.
With the Indian rupee breaching the 90-per-dollar mark in December 2025 and weakening by over 7% since May, is this a good time for NRIs to transfer money to India? Given that each dollar now converts into a higher rupee value, should overseas investors consider remitting funds or deploying surplus USD savings into Indian investments, or is it better to wait for currency stability?
Advice by Anshi Shrivastava, Head - Personal Finance Training at 1 Finance
The Indian rupee touched a historic low of ₹90.02 against the US dollar on December 3, 2025. This is a 7% drop from Rs 84 levels in May, making Rupee Asia's worst-performing currency this year, according to Bloomberg.
Converting funds now locks in this favourable rate for NRIs, yielding more rupees per dollar. Key drivers of the weakness include uncertainty over US-India trade deals, a widening trade deficit, foreign investor outflows from equities, and robust dollar demand. Yet, according to the 1 Finance's India Macroeconomic Index India's fundamentals stay robust, with real GDP growth for FY26- 7.4% and for FY27- 6.6%. Therefore, we expect a recovery in 2026.
For NRIs remitting money, these appear as short-term fluctuations. While rates can swing briefly, the rupee has historically depreciated 3-4% annually against the dollar, reinforcing that staying invested generally beats trying to time the market.
Background
The sustained weakening of the rupee against the US dollar has triggered a sharp rise in overseas fund transfers by Indians, prompting banks to tighten compliance checks. As per news reports, high street lenders are now demanding more extensive documentation from high net worth individuals (HNIs), non-resident Indians (NRIs) and businesses remitting money abroad, with a growing focus on verifying the source of funds.
A news report in the Times of India stated that at least two Mumbai-based private sector banks have recently asked customers to submit CA-certified documents to validate fund origins for outward remittances. In several cases, banks have insisted that these certificates be issued only by CAs empanelled with them, adding another layer to the process. Practitioners say the scrutiny has become unusually intense, with one noting that assessing fund sources in such detail is increasingly common.
This heightened caution comes despite a well-defined regulatory framework. Under the Reserve Bank of India’s Liberalised Remittance Scheme (LRS), resident individuals can remit up to $250,000 a year for permitted purposes, using only their own funds. However, bankers are now seeking additional assurances beyond existing requirements, resulting in more paperwork for customers.
Remittances from non-resident ordinary (NRO) accounts are facing particular scrutiny. Banks are seeking clarity on the origin of balances that may have accumulated over many years, especially when accounts were redesignated following a change in residential status. In some cases, customers have been asked to furnish old salary records to establish fund provenance.
Even corporate outward payments, which are not subject to LRS limits, are drawing closer examination. Practitioners say the insistence on extra documentation and empanelled CAs marks a clear shift in banks’ approach as overseas remittances accelerate alongside the rupee’s decline.