Several banks, including State Bank of India, HDFC Bank, and ICICI Bank, have revised the rates on foreign currency (non-resident) deposits after
Several banks, including State Bank of India, HDFC Bank, and ICICI Bank, have revised the rates on foreign currency (non-resident) deposits after the central bank relaxed foreign investment rules to shore up forex inflows.
In July this year, the RBI had announced a slew of measures to diversify and expand the sources of forex funding in order to mitigate volatility and dampen global spillovers. As part of the central bank’s new measures, foreign investors can now invest in short-term corporate debt. The RBI has also allowed FPIs to purchase more government securities under the fully accessible route.
Foreign currency non-resident deposits and NRE deposits will be exempt from the maintenance of cash reserve ratio (CRR) and statutory liquidity ratio (SLR). This relaxation will be available for deposits mobilised up to November 4, 2022. However, transfers from Non-Resident (Ordinary) (NRO) accounts to NRE accounts shall not qualify for the relaxation.
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