Comments
The RBI on Friday said international liabilities of banks have increased 36 per cent as non-resident Indians deposited funds in their home country.
“International liabilities...of the banks located in India surged by 35.8 per cent in December 2013, on account of accretion of capital flows through Foreign Currency Non-Resident (Bank) (FCNR(B)) deposits and foreign currency borrowings,” RBI said in its latest report.
The FCNR(B) deposits rose to $35.29 billion at the end of December 2013 as compared to $13.39 billion at the end of December 2012.
In order to increase inflow of foreign funds, the RBI had raised the interest rate on FCNR deposits in August last year.
The central bank had raised the ceiling to LIBOR/Swap plus 400 basis points to help attract more inflows from abroad.
However, the ceiling on its swap windows for FCNR-(B) of more than one-year but less than three-year maturities will remain at the existing LIBOR/Swap plus 200 basis points.
In terms of Exchange Earners Foreign Currency (EEFC), the deposits grew by $3.17 billion during the quarter as against $2.2 billion at the end of December 2012.
The RBI said the increase in both international liabilities and assets (LBS) was contributed by higher exposure towards the US, the UK, the UAE, Singapore, Germany and Hong Kong during 2013.
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.