RBI allows rupee loans against FCNR(B) to boost dollar inflows
The Reserve Bank of India just rolled out new perks to attract more foreign currency from nonresident Indians (NRIs).
Now, banks can offer rupee loans against fresh or renewed FCNR-B deposits of three to five years mobilized between 8 June and 30 September without worrying about ANBC calculations tied to priority sector lending targets, making it easier to use these funds and boosting dollar inflows.
RBI eases deposit rules for banks
Loans against NRE rupee term deposits (with at least a three-year lock-in) also get the same relaxed treatment if raised between June 19 and September 30.
Plus, banks do not have to set aside cash reserve ratio and statutory liquidity ratio (CRR and SLR) on fresh FCNR-B deposits of minimum tenor of three years and a maximum of five years, mobilized between 8 June and 30 September, and on fresh NRE term deposits during this window.
These moves are all part of an RBI push (already seeing big names like SBI and ICICI jump in) to keep the rupee strong by bringing in more dollars before the September deadline.