UAE central bank restrictions may dampen NRI dollar mobilisation

The UAE Central Bank has imposed restrictions on representative offices of Indian banks, limiting activities such as business facilitation, cross-selling, and documentation. This could slow FCNR(B) deposit mobilisation under the RBI special window (open until September 30), particularly affecting retail NRI customers who need documentation to access the leverage facility. The UAE accounts for over 70% of expected FCNR(B) inflows from the Gulf region; only Bank of Baroda holds a full onshore banking license, while SBI and ICICI Bank operate through DIFC Category 1 licenses.