Topic
foreign currency
Finance RBI removes priority sector burden for fresh FCNR(B) and NRE deposits
RBI has exempted advances against fresh FCNR(B) and NRE term deposits from priority sector lending calculations, effective immediately. The move completes a three-part policy push to boost foreign currency inflows and ease compliance burdens, with banks having raised over $36 billion in FCNR(B) deposits.
Finance PNB Targets $2.5 Billion via FCNR(B) Deposits, Raises $425 Million So Far
State-run Punjab National Bank targets $2.5 billion from Foreign Currency Non-Resident Bank deposits, having raised $425 million so far. MD Ashok Chandra cites major traction from the UK, Dubai and GIFT City. The bank also reported a three-fold jump in first-quarter profits, while monitoring monsoon risks to agriculture.
Finance Finance Minister Nirmala Sitharaman Urges Banks to Sustain Foreign Currency Deposit Momentum with Innovative Products
Finance Minister Nirmala Sitharaman has directed public sector banks to enhance outreach to NRIs and introduce innovative deposit products to sustain momentum in foreign currency deposits. The review covered FCNR(B), ECB, and OFCB swap initiatives, with bankers noting significant NRI interest from key regions.
Finance Indian Bank targets $2 billion through FCNR deposits after RBI removes interest rate ceiling
Indian Bank plans to raise $2 billion through FCNR(B) deposits after the RBI removed the interest rate ceiling on fresh deposits with maturities of 3-5 years until September 30, 2026. The bank has secured $140 million since mid-June and raised the deposit rate to 6%. The move is expected to boost foreign currency inflows for the bank, which also reported a 10% rise in Q1 net profit to Rs 3,273 crore.
Finance RBI Sells $12B Gold Amid US-Iran Tensions to Bolster FX Reserves
The Reserve Bank of India reportedly sold $12 billion in gold reserves to protect its foreign currency assets amid the US-Iran conflict. This move aims to stabilize the rupee and manage the impact of rising crude oil prices.