Banks told to plan NRI week in January
banks to look at organising a non-resident Indian (NRI) week in January, aligning with the annual Pravasi Bhartiya Divas, to attract more capital from NRI investors and also understand their issues and provide an instant redressal forum.
As per the latest data from the Reserve Bank of India (RBI), NRI deposits increased to $2.14 billion in the first quarter of this financial year from $349 million a year ago.
«We have made a suggestion to the banks. A conclave like this can be held in Gujarat International Finance Technology (GIFT) City, but it is for the banks to work out the details.
They should look at attracting more NRI funds not only through deposits but also in capital markets,» said a government official, who did not wish to be identified.
The government made this suggestion to chief executives of key banks in a meeting last month, the official said.
Earlier this month, the finance ministry amended the Income Tax Rules, exempting non-residents opening a bank account from the requirement of submitting a permanent account number (PAN).
«This will further give a boost to retail deposits and attract more capital from NRI investors,» said the official.
Following the amendment, non-residents opening a bank account at the International Financial Services Centres (IFSC) will need to file a declaration in Form 60 and should not have any tax liabilities in India.
A senior bank executive said the lenders are exploring the possibility of holding a conclave through their International Financial Services Centre Banking Unit at GIFT City. «We will coordinate with the International Financial Services Centres Authority and the Indian Banks' Association to get all players onboard,» the executive said on condition of
