Banks show interest in NRIs The finance sector in India has off late taken a beating because of the falling rupee rate. The rupee has been performing badly and that has affected the markets as well. The falling rupee is bad news for India but NRIs investing in India have an upper hand. Banks have started offering a higher rate of interest for NRIs over domestic investors after the Reserve bank of India’s decision to do so. Higher rates of interests are available to investors who choose to deposit over and above a tenure of 3 years. Federal Bank for one has hiked it’s Non-resident external (NRE) term deposit to 9% for a 3 year tenure. The bank as a result is seeing a high rate of investment, as much as 50% in FY’14, compared to last year. Domestic investors are being charged 8.75% for the same kind of investment. Along with Federal Bank, South Indian bank has increased the NRE max deposit rate to 9.5 for a period of 3 to 5 years. The government is of the opinion that remittances from abroad help reducethe current account deficit. Therefore, this is good news for the NRIs investing in India. NRI matters..
Posted on: Fri, 30 Aug 2013 10:12:27 +0000
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