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Elina Mohanty
Radhika Menon

Mumbai May 9 Banks are now serving products and designing services for high net worth individuals, who can remit $1,00,000 in a financial year (from $50,000 earlier).

But banks, particularly foreign, feel the need for clarity on the kind of products to be put on offer as overseas investments attract the regulatory eye. According to banks, there had not been many takers when the earlier remittance limit was $50,000.

"With the RBI approval, banks may soon be able to offer not just plain vanilla overseas deposits but also structured and capital-related products," said Mr Shiv Khazanchi, Managing Director and Head, Private Banking, India, Standard Chartered Bank.

Credit Facilities

`HSBC Premier', which was recently launched, allows well-heeled Indians and NRIs (earning at least Rs 20 lakh per year) to transfer their `credit history' between countries, making it easier for them to open bank accounts and apply for other services such as credit cards and home loans.

They can also use credit facilities at special terms for overseas property purchases up to a 60 per cent loan-to-valuation ratio (subject to local regulations on mortgages).

Overseas Partners

"As and when regulators evolve guidelines permitting offshore mutual funds to appoint registered agents in India, another investment option will present itself," said Mr Nicholas G. Winsor, Head, Personal and Financial Services, HSBC. Most banks are looking at tying up with overseas partners, mostly banks, to offer products and services. "We are looking at offering our clients investments in shares listed in overseas stock exchanges," said a senior official at a private sector bank.

Public sector banks hope to begin by offering deposit schemes for investors at their foreign branches. "We could also look at offering the US and Japanese Government bonds," said a senior official at a public sector bank. Individuals can also make investments in properties abroad.

Related Stories:
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Increase in overseas limit will encourage global offerings: MFs

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