Topic
nri deposits
Finance RBI: NRI Deposit Liquidity Surge Is Temporary, Set to Ease After Q2 Peak
RBI Governor Sanjay Malhotra said inflows of over $36 billion from the special FCNR(B) deposit scheme will have a temporary and limited impact on liquidity, with surplus conditions expected to ease after peaking around the second quarter. The central bank has no target for dollar mobilisation and no proposal to advance or extend the scheme.
Finance Private Bank Chiefs Temper NRI Deposit Inflow Expectations as Tax, Liquidity Constraints Bite
Top private bank chiefs are taking a cautious view of RBI's FCNR(B) deposit window, with lenders saying tax rules, overseas liquidity conditions and regulatory constraints could limit inflows below initial estimates. HDFC Bank's Sashidhar Jagdishan said potential inflows may be around $50-55 billion instead of the earlier $60-80 billion estimate, while Axis Bank's Amitabh Chaudhry cautioned against speculation on single parameters.
Finance Led by NRI deposits, RBI swaps may draw $80-85 billion in foreign capital
Bankers expect India to attract $80-85 billion through RBI's swap-backed initiatives spanning FCNR(B) deposits, external commercial borrowings, and overseas foreign currency bonds. Early traction is seen in NRI deposits, while PSUs and banks adopt a wait-and-watch approach for other instruments. The inflows are expected to support the rupee, which has been under pressure from global turmoil.