NRI deposits rise by $13.71 bn in November 2013

FCNR(B) deposits rise while NRE and NRO deposits decline

The Reserve Bank of India's efforts to attract foreign exchange resulted in the rise in remittances from non-resident Indians (NRIs) by $13.71 billion in November to $96.25 billion as the swap facility for FCNR(B) deposits attracted money from overseas Indians. Under foreign currency non-resident banks [FCNR(B)] category, it stood at $38.62 billion at end of November, up from $24.70 billion in October.

In order to stabilize Rupee and pull NRI deposits the RBI took many steps earlier in the months of August and September 2013.

On 04 September, RBI announced a special concessional dollar swap window to attract FCNR (B) deposits and foreign currency borrowings through which it raised $34 billion, thereby providing enough stability to Rupee. Under this window, banks were offering up to 3.5% fixed rate of interest on deposits ranging between one and three years.

However, the other two categories of NRI deposits NRE and NRO saw net outflows in November 2013. The outstanding NRE deposit base was $ 49.06 billion compared with $49.21 billion in October and NRO - $ 8.57 billion compared with $8.62 billion in October 2013).

Meanwhile, the central bank sold net $10.08 billion in November 2013. Its outstanding net forward sales at the end of November 2013 stood at $32.54 billion, up from $ 14.45 billion at end of October 2013.

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