NRIs forced to live with low returns on dollar deposits

Non-resident Indians will have to live with low returns on foreign currency deposits in the foreseeable future as major Indian banks are set to slash rates on foreign currency non-resident bank (FCNR-B) deposits.

State Bank of India, India’s largest commercial bank, recently cut interest rates on US dollar denominated deposits of one and two-year periods for NRIs by 11 basis points to 2.47%.

Many other public sector Indian banks are expected to slash interest rates on their FCNR-B deposits and as well as on NRI rupee deposits, which will also impact the rupee deposits of NRIs.

Read the full story here 

RBI enhances scope of non-resident rupee accounts

To popularise cross-border transactions in Indian rupee, the Reserve Bank has enhanced the scope of 'Special Non-resident Rupee' (SNRR) by allowing persons residing outside India to open such accounts for purposes like external commercial borrowing and trade credit in INR.

The RBI, in a notification on Friday, said: "With a view to promote the usage of INR products by persons resident outside India, it has been decided, in consultation with the Government of India, to expand the scope of SNRR Account by permitting person resident outside India to open such account for external commercial borrowings in INR; trade credits in INR..."

Read full report here