Topic
nri deposits
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.
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.