India’s central bank, the Reserve Bank of India (RBI), allows banks to extend loans using foreign-currency deposits raised under a special program designed to attract overseas funds, according to reports. The change permits lenders to provide credit backed by these foreign-currency deposits, a mechanism intended to improve banks’ participation in the scheme. Both outlets describe the step as part of broader RBI measures aimed at strengthening dollar inflows into India. By enabling banks to deploy the deposits as collateral for lending, the policy may make it easier for banks to take part in the program and potentially draw more overseas funding into the country. The reports frame the decision as supportive of inflow objectives rather than as a standalone change to lending rules. Overall, the RBI’s adjustment is presented as a way to increase the effectiveness and uptake of its foreign-funds attraction initiative by expanding how banks can use the deposits that they raise under it.