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
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.
Anil Rego, CEO, Right Horizons, answers your personal income tax queries.
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
'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.
Anil Rego, CEO, Right Horizons, answers your personal income tax queries.
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.
When an NRI returns to India, he should be aware of his tax residency status.
IDBI has increased the interest rate on Non-Resident External and Foreign Currency Non-Resident fixed deposit for various maturities with effect from November 1, 2005.
Rupee, bonds may see knee-jerk reaction, as Urjit Patel is considered an inflation warrior
'At this point, it does not appear to be a Lehman Brothers kind of crisis, which had a domino effect on the financial system.'
Bank of Baroda (BoB) has revised the interest rates on FCNR(B) and NRE term deposits with effect from December 3, 2004.
The Reserve Bank has taken some steps to shore up the domestic currency.
While Raghuram Rajan has said in the past that other factors, including domestic fundamentals, outweigh the US Fed policy meet, this time it would be different
In yet another step to attract foreign money, the Reserve Bank of India (RBI) has allowed non-resident investors to acquire shares of listed Indian companies through stock exchanges under the foreign direct investment (FDI) scheme.
Banks want lower provisioning burden on recast debt, interest on cash reserve ratio deposits.
RBI is expected to discuss about the impact of GST in its monetary policy.
