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Indian expatriates in Oman and other Gulf Cooperation Council (GCC) countries have started taking personal loans in a bid to take advantage of a record fall in the value of rupee against local currencies, a report said.
Money exchangers and bankers in Muscat said Non-resident Indians (NRIs) have started resorting to personal loans as rupee touched an all-time low of 62.03 against the dollar on Friday, the Times of Oman reported. Exchange houses in Oman were offered Rs 160 for an Omani riyal on Friday.
The rate continued for three days, as theforeign exchange market is closed on Saturday and Sunday.
“Indian expatriates started taking personal loans for remitting money back home,” said Rajeev V G, general manager of Global Money Exchange, managed by State Bank of Travancore.
“We have witnessed a substantial increase in remittance and high volume transactions, a clear indication that expatriates are taking loans for arranging funds for remitting money,” another exchange official said, adding there had been a 10-15 per cent growth in remittance on Friday over the previous day.
Since the rupee’s value depreciated NRIs in Oman started remitting their savings. The Central Bank of Oman has also started trying to find the sources of funds for foreign remittances. The country has recently made it mandatory to credit employee salary only through a bank so that there is a check on sources of income. Money exchanges in Oman also submit a report with details of different ranges of remittance transactions to various countries on a monthly basis to the CBO. K Cherian Varghese, former chairman and managing director of Union Bank of India, Corporation Bank and South Indian Bank, has resigned from the directors board of Kochi-based Federal Bank.
