NRI Talk: FCNR(B) Deposits - Higher rates offer NRIs an attractive investment opportunity
RBI guidelines and the rates at which they are able to lend in foreign currency,” says Bhavik Thakkar, CEO Abans Investment Managers.
In an interview with ETMarkets, Thakkar said: “For NRIs since rates have gone down in global major economies, India FCNR rates relatively becomes attractive, if it further goes up, it may benefit them more,” Edited excerpts:
What is your take on the recent move by the RBI? Is it good news for NRIs?
Banks offer an interest rate on FCNR(B) deposits based on RBI guidelines and the rates at which they are able to lend in foreign currency.
Presently, banks are offering 5.9-6.2% interest on $FCNR deposits as they are able to lend at 7.5-8% in $ currency to Indian businesses for their overseas funding needs.
While RBI has now permitted to offer upto 1.50% higher interest rates compared to current levels, the actual rates the banks will offer depends upon their ability to earn higher rates from loans.
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