Remittances growth is muted due to "structural" reasons which will hamper consumption demand locally, a report said on Thursday. "...the muted external remittances growth is more of a structural issue than transitory," India Ratings and Research said in its note. India has been the largest recipient of remittances from its diaspora spread all across the world and received over $70 billion inflows last year. The agency argued that flows had started to moderate even before the COVID-19 pandemic outbreak, pointing out that as a percentage of gross disposable income, the share of remittances fell to 2.5 per cent in FY19 as against 3.5 per cent in FY10.
A N Shanbhag, the highly respected investment guru, and his son Sandeep Shanbhag, answer your questions on NRI investment.
USD-denominated FCNR (B) deposits of maturities of one year and above but less than two years and two years and above but less than three years, have been revised upwards to 4.68 per cent from 4.64 per cent and 4.57 per cent respectively.
India received $70 billion in remittances during 2014.
The facility will be open till November 30.
The proposed Rs 10,000 crore (Rs 100 billion) of bond purchase would be done on Monday.
To attract more dollar inflows, the Reserve Bank extended the deregulated interest rate scheme for NRE deposits till January 31 next year from the earlier November 30.
The forex kitty swelled for the fifth week in a row during the week ended December 6 to $295.71 billion, adding $4.41 billion. Between August 30 and December 6, the reserves have increased by close to $17 billion.
The swap windows were closed on November 30.
Inflation target remains 5% for January 2017.
Consider taxation and currency risks before choosing between NRI, NRO and FCNR accounts.
2013 foreign currency non-resident deposits to mature in Sep-Nov
The Reserve Bank of India hiked key interest rates by 0.25 per cent each in the last two reviews to tame inflation.
In worldwide trade, the US dollar continued its highly bullish trend against all major emerging market currencies
Anil Rego, CEO, Right Horizons, answers your personal income tax queries.
Lacklustre domestic equities alongside ongoing FCNR redemptions added pressure on the local currency
The rupee weakened to 62.58 against the US dollar in the early trade on Thursday.
According to the global financial services major, FIIs have recouped around 25 per cent of the outflows seen over the June-August period, when the country witnessed its sharpest bout of FII outflows since the global financial crisis.
Banking laws for NRIs allow for the following deposit schemes, or simply put, accounts with authorized dealers -- banks and financial institutions authorized by Reserve Bank of India to deal in foreign exchange -- to be maintained in Indian rupees and in foreign currency.
The Reserve Bank of India kept its policy interest rate unchanged at a five-year low of 6.50 percent on Tuesday.
India's foreign exchange reserves declined by a whopping $4.343 billion to $367.646 billion.
Lower inflation, FCNR(B) outflows likely to influence central bank decision
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The newly-appointed Governor Raghuram Rajan said on Wednesday Reserve Bank of India will offer a window to banks to swap the fresh FCNR-B dollar funds, mobilised for a minimum tenor of three years and over, at a fixed rate of 3.5 per cent per annum. According to Bank of America Merrill Lynch, "the move should fetch $8-10 billion", adding that the move would help in shifting rupee risks away from NRIs at a time of extreme volatility.
Customers can electronically transfer money instantly to more than 1,000 branches of banks across India.
For NRE (Rupee) deposits for a duration of one year to less than two years, the rate has been increased to 4.92 per cent from the earlier 4.17 per cent, a press release issued here said. For two years to less than three years and three years to five years, the rate has been increased to 4.41 per cent from 3.66 per cent and 4.89 per cent from the earlier 4.14 per cent, respectively, the release said.
This is the first time in the RBI's history that a governor is leaving without willing to renew his contract
Anil Rego, CEO, Right Horizons, answers your personal income tax queries.
'We don't know how much the Pay Commission outflow will be.'
The Union Bank of India has revised downwards the interest rates applicable to its dollar-denominated FCNR (B) and NRE (Rupee) term deposits.
ICICI Bank on Friday said it has revised interest rates on foreign currency NRE fixed and FCNR deposits from July 1.
FPIs, which are holding large exposures in Indian debt, could also be expected to book some capital gains as yields slide down
ICICI Bank has revised interest rates on non-resident external savings account and NRE fixed deposit by 0.61 per cent and 0.47 per cent respectively across various maturities.
ICICI Bank on Thursday increased interest rates on FCNR deposits for all currencies, other than the Japanese Yen, across all maturities by 25 basis points.
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