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During the last three years, NRI deposits in Gujarat increased by 115% on economic vulnerability, depreciation of the <keyword id="6355302" type="ORGANIZATION" weightage="20" keywordseo="Rupee">rupee</keyword>, and attractive interest rates offered to NRIs by Indian banks. In year 2014-15, the deposits breached the Rs 50,000-crore mark as it increased to Rs 54,574 crore. Gujaratis comprise around 33% of the <keyword id="6402673" type="ORGANIZATION" weightage="20" keywordseo="Indian-Diaspora">Indian diaspora</keyword> worldwide. And in term of NRI deposits, Gujarat is among the top five states in the country. Jayesh Vithalani, an Ahmedabad-based financial consultant told The Economic Times, "The <keyword id="2928303" type="UNKNOWN" weightage="20" keywordseo="liquidity-crisis-in-Europe">liquidity crisis in Europe</keyword> and Africa prompted many NRIs to divert their funds to India." The financial daily also revealed that in the 2013-14, India’s apex bank RBI hiked the Libor rate for <keyword id="488485" type="UNKNOWN" weightage="20" keywordseo="Foreign-Currency-Non-resident">Foreign Currency Non-Resident</keyword> (<keyword id="91029" type="ORGANIZATION" weightage="20" keywordseo="FCNR">FCNR</keyword>) accounts by up to 350 basis points for the period of three to 10 years. Using this FCNR account, an Indian residing abroad can maintain a fixed deposit in foreign currencies and eventually earn regular interest. 

	According to RBI data, in 2014-15, there was a little over $115 billion (about Rs 7 lakh crore) in NRI accounts in India. And Gujarat accounted for 7.78% of the total amount.
 The ET report also mentioned a latest <keyword id="1578282" type="ORGANIZATION" weightage="20" keywordseo="State-Level-Bankers-Committee">State Level Bankers' Committee</keyword> (SLBC) data which showed that total bank deposits in Gujarat was Rs 4.9 lakh crore as of March 2015. Out of this amount, 11.13% or Rs 54,574 crore belong to NRIs. (Image: The Economic Times)

NRI deposits in Gujarat passes Rs 50,000-crore mark

The <keyword id="6354335" type="General" weightage="50" keywordseo="reserve-bank-of-india" source="Orion">Reserve Bank of India</keyword>'s (<keyword id="30067" type="General" weightage="100" keywordseo="rbi" source="Orion">RBI</keyword>) move to relax regulations to boost foreign exchange inflows will not have any material change in receipts, but certainly helpful in directional forex signalling to speculators, said <keyword id="141615" type="General" weightage="80" keywordseo="emkay-global" source="Orion">Emkay Global</keyword> Financial Services Ltd. Reacting to RBI's moves on Wednesday, Emkay Global in a report said: "While these measures to boost capital account are helpful, they may not have a material impact on flows. Nonetheless, they will still ease the pressure of the RBI to intervene to some extent." According to Emkay Global, with low forward premia, this mobilisation may still make some sense for banking entities. The timing of RBI's move coincides with the typically strong remittance/deposit season that comes with the beginning of the festive season. This can take the pressure off banks to raise domestic deposits amidst accelerating credit growth, and also somewhat cool-off domestic borrowing rates, Emkay Global said. The easing of all the available channels of foreign portfolio investors (<keyword id="725142" type="General" weightage="50" keywordseo="fpi" source="Orion">FPI</keyword>) investments in debt may not lead to material change in FPI flows given the free limits that are already available. However, the new tenors added in Fully Accessible Route (FAR) securities are fairly active. "Thirdly, the all-in cost ceiling under the <keyword id="60971" type="General" weightage="50" keywordseo="ecb" source="Orion">ECB</keyword> (external commercial borrowings) framework is also being raised by 100 bps, subject to the borrower being of investment grade rating, however we seek more clarity on this front as to whether it leads to any change in caps (from existing 450bps), and if it makes sense for domestic good investment-grade borrowers to borrow in foreign currency, except when they are facing a credit crunch back home," the report said. While it is debatable if these steps can lead to significant flows, they could be effective in preventing speculative attacks on the currency and giving directional policy signals to the markets, Emkay Global added. The key measures announced by RBI on Wednesday were: 1. Cash Reserve Ratio + Statutory Liquidity Ratio (CRR+ SLR) exemptions: Incremental FCNR Bank and Non-Resident External (NRE) deposit liabilities now exempt from <keyword id="626944" type="General" weightage="50" keywordseo="net-demand-and-time-liabilities" source="Orion">Net Demand and Time Liabilities</keyword> (NDTL) computation for maintenance of CRR and SLR. Transfers from Non-Resident Ordinary (NRO) accounts will not qualify for this relaxation. This relaxation is available till November 4, 2022. 2. Interest rates on FCNR and NRE deposits: Banks are temporarily allowed to raise fresh FCNR(B) and NRE deposits without having to adhere to the regulations on interest rates on these deposits. 3. FPI debt investment: Easing all the available channels of FPI investments: (i) All new issuances of 7-year and 14-year G-secs (including fairly active current issuances of 7.10 per cent GS 2029 and 7.54 per cent GS 2036 <keyword id="1351125" type="General" weightage="50" keywordseo="ato" source="Orion">Ato</keyword> be now covered under Fully Accessible Route (FAR). At present, 5-year, 10-year and 30-year tenors are covered. (ii) FPI investments in G-secs and corporate debt will not be subject to the short-term limit, i.e., not more than 30 per cent of investments in G-secs and corporate debt can have a residual maturity less than one year. (iii) FPIs can invest in commercial papers and non-convertible debentures with an original maturity of up to one year as against earlier mandate of at least one year. These investments will not be included as part of the short term limit on investments in corporate securities. 4. Foreign currency lending by banks: Banks can utilise overseas foreign currency borrowings (OFCBs) for lending for a wider set of purposes, not just export finance. The measure is expected to facilitate foreign currency borrowing by a larger set of borrowers who may find it difficult to directly access overseas markets. 5. ECB limits: The limit for ECBs under the automatic route has been raised from $750 million to $1.5 billion per financial year. The all-in cost ceiling has also been raised by 100bps. The measures 2-5 above are valid till 31st October 2022, Emkay Global said. SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/business/news/stopped-russian-imports-in-april-says-essar-oil/articleshow/92714422.cms">Stopped Russian imports in April says Essar Oil</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/science/space/news/elon-musk-is-confident-that-humanity-will-reach-mars-in-our-lifetime/articleshow/92714414.cms">Elon Musk is confident that humanity will reach Mars in our lifetime</a>

RBI's moves to boost forex inflows could have an impact on domestic borrowing rates

<keyword id="6357560" type="General" weightage="100" keywordseo="idbi-bank" source="Orion">IDBI Bank</keyword> has introduced a <keyword id="2346698" type="General" weightage="20" keywordseo="limited-period" source="Orion">limited period</keyword> special 500 days deposit under the <keyword id="14779347" type="General" weightage="50" keywordseo="amrit-mahotsav-fd" source="Orion">Amrit Mahotsav FD</keyword> scheme, which will offer 6.70 per cent <keyword id="6371181" type="General" weightage="20" keywordseo="interest-rates" source="Orion">interest rates</keyword>. Further, a special bucket of 500 days for US dollar designated FCNR (B) deposits is also introduced offering a peak rate of 3.63 per cent. Meanwhile, the bank has also revised the interest rates on term deposit across various tenors with effect from Monday. The bank is now offering the highest rate of 6.55 per cent on select tenors. Most banks are increasing their deposit rates for boosting deposit to support rising credit off-take as liquidity in the banking system has narrowed. The hike in deposit rates are in line with the <keyword id="6354335" type="General" weightage="50" keywordseo="reserve-bank-of-india" source="Orion">Reserve Bank of India</keyword>'s 50 basis points hike in repo rate in the August monetary policy. SEE ALSO : <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/business/news/nft-transactions-to-reach-40-mn-globally-in-5-yrs-amid-scam-threats-report/articleshow/93704271.cms">NFT transactions to reach 40 mn globally in 5 yrs amid scam threats-report</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/india/news/pulses-like-urad-moong-arhar-and-oil-seeds-could-get-pricier/articleshow/93702821.cms">After rice, cereals and pulses could get pricier</a>

IDBI Bank revises interest rates on term deposits, introduces limited-period 500-day fixed deposit

The <keyword id="6354335" type="General" weightage="50" keywordseo="reserve-bank-of-india" source="Orion">Reserve Bank of India</keyword> (<keyword id="30067" type="General" weightage="100" keywordseo="rbi" source="Orion">RBI</keyword>) on Wednesday announced a series of measures to boost foreign exchange inflows. The central bank said that it has taken the steps in order to further diversify and expand the sources of <keyword id="6358355" type="General" weightage="20" keywordseo="forex" source="Orion">forex</keyword> funding so as to mitigate volatility and dampen global spillovers. India's foreign exchange reserves stood at $593.3 billion as on June 24, 2022, supplemented by a substantial stock of net forward assets, it said. The RBI has exempted incremental Foreign Currency Non-Resident Bank (FCNR-B) and Non-Resident (External) Rupee (NRE) deposit <keyword id="127684" type="General" weightage="20" keywordseo="Liabilities" source="Orion">liabilities</keyword> for computation of Net Demand and Time Liabilities (NDTL) for maintenance of cash reserve ratio (<keyword id="35038" type="General" weightage="20" keywordseo="crr" source="Orion">CRR</keyword>) and statutory liquidity ratio (<keyword id="46197" type="General" weightage="20" keywordseo="SLR" source="Orion">SLR</keyword>) by the banks. This will be effective from the reporting fortnight beginning July 30, 2022 with reference base date of July 1. "This relaxation will be available for deposits mobilised up to November 4, 2022. Transfers from Non-Resident (Ordinary) (NRO) accounts to NRE accounts shall not qualify for the relaxation," the RBI said. It also decided to temporarily permit banks to raise fresh FCNR(B) and NRE deposits without reference to the extant regulations on interest rates, with effect from July 7, 2022. This relaxation will be available for the period up to October 31, 2022. The RBI also relaxed rules relating to foreign portfolio investment in debt by allowing all new issuances of government securities (G-Secs) of 7-year and 14-year tenors, including the current issuances of 7.10 per cent GS 2029 and 7.54 per cent GS 2036, under the Fully Accessible Route (FAR). It also decided that <keyword id="6362476" type="General" weightage="20" keywordseo="investments" source="Orion">investments</keyword> by FPIs in government securities and corporate debt made till October 31, 2022 will be exempted from the macroprudential short term limit - not more than 30 per cent of investments each in government securities and corporate bonds can have a residual maturity of less than one year. These investments will not be reckoned for the short term limit till maturity or sale of such investments. As part of the macroprudential framework under the medium term framework (MTF), foreign portfolio investors (FPI) can invest only in corporate debt instruments with a residual maturity of at least one year. The central bank has decided that FPIs will be provided with a limited window till October 31, 2022 during which they can invest in corporate money market instruments viz., commercial paper and non-convertible debentures with an original maturity of up to one year. The FPIs can continue to stay invested in these instruments till their maturity/sale. These investments will not be included for reckoning the short term limit for investments in corporate securities. According to the RBI, Authorised Dealer Category-1 (AD Cat-I) banks can utilise overseas foreign currency borrowings (OFCB) for lending in foreign currency to entities for a wider set of end-use purposes, subject to the negative list set out for external commercial borrowings (ECBs). The measure is expected to facilitate foreign currency borrowing by a larger set of borrowers who may find it difficult to directly access overseas markets. This dispensation for raising such borrowings is available till October 31, 2022. As regards the external commercial borrowings (ECB) the RBI has temporarily increased the limit under the automatic route from $750 million or its equivalent per financial year to $1.5 billion. The all-in cost ceiling under the ECB framework is also being raised by 100 basis points, subject to the borrower being of investment grade rating. The above dispensations are available up to December 31, 2022. SEE ALSO : <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/science/environment/news/monsoon-rain-wreaks-havoc-in-himachal-and-karnataka-orange-alert-in-gujarat/articleshow/92704563.cms">Monsoon rain wreaks havoc in Himachal and Karnataka, orange alert in Gujarat</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/tech/news/macbook-air-with-m2-chip-will-go-on-sale-from-july-15/articleshow/92704253.cms">Apple’s MacBook Air with M2 chip will go on sale from July 15, pre-orders starting July 8</a>

RBI tries to boost forex reserves by easing NRI deposit norms

NEW DELHI: The <keyword id="30287" type="CITY" weightage="40" keywordseo="SP">S&amp;P</keyword> <keyword id="53232" type="COMPANY" weightage="40" keywordseo="BSE-sensex">BSE Sensex</keyword> managed to bounce back on Monday even though the macro triggers remain muted with IIP data reflecting the underlying weakening production trend in the manufacturing sector. Today, the index is witnessing dull trade. 
 Last week, index of industrial production (IIP) contracted for the second straight month. The index fell by 2.1 per cent for November on a year-on-year basis, which was even sharper than October’s decline of 1.6 per cent. Now all eyes are on <keyword id="279236" type="UNKNOWN" weightage="40" keywordseo="Inflation-data">inflation data</keyword> due on Wednesday for the month of December. 
 The BSE <keyword id="6484188" type="CITY" weightage="40" keywordseo="Sensex">Sensex</keyword> rallied over 400 points in intraday trade on Monday, led by smart buying seen in IT, banks, capital goods and oil &amp; gas <keyword id="6354298" type="ORGANIZATION" weightage="40" keywordseo="stocks">stocks</keyword>. The index finally closed 375.72 points, or 1.8 per cent higher, at 21,134.21. 
 The large part of the optimism can be attributed to <keyword id="6354512" type="CITY" weightage="40" keywordseo="Infosys">Infosys</keyword>' stellar results on Friday for the quarter ended December 31. However, most analysts rule out any major surprises from Q3 results considering the fact that the benefit of the currency which was there in the previous quarter might not be available in December quarter. 
 “Markets would be closely watching the <keyword id="22195" type="COMPANY" weightage="40" keywordseo="Inflation">inflation</keyword> data and that would definitely give some cues as to what the RBI would do in the upcoming policy meet,” said Ankit Agarwal, <keyword id="1134824" type="POSITION" weightage="40" keywordseo="VP-Fund-Manager">VP &amp; Fund Manager</keyword>, Centrum Broking. 
 
“We feel that the markets in the near-term will continue to remain a little volatile as we do not expect any great wonders from the quarterly results. In the Q2, they had got a benefit of higher depreciated currency, but on a QoQ basis, even that benefit has sort of normalised,” he added. 
 Agarwal is of <keyword id="358683" type="ENTERTAINMENT" weightage="40" keywordseo="The-View">the view</keyword> that any dips in the market, any significant dips in the market, we would buy into some of the cyclicals with a 10 to 15-month investment horizon as there could be some disappointment in the results. 
 
We have collated list of ten stocks from various brokerage firm which can deliver return upto 50 per cent in 2014: 
 
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Indiabulls Real Estate: Motilal Oswal maintains ‘BUY’ rating on the stock as the firm’s cash flow is likely to remain steady due to execution progress, which will lead to a decline in net debt. The stock is trading at around 40 per cent discount to its NAV estimate of 125. 
 
Prestige Estates Projects Ltd: Religare maintains ‘BUY’ rating on the stock as the company has posted steady sales in the third quarter aided by a big launch in Bangalore. Its full-year guidance is good and a pick-up in deliveries is the key performance indicator. 
 VST Tillers Tractors: Nirmal Bank maintain ‘BUY’ rating on the stock since the company is asset-rich, with a clean balance sheet, and enjoys dominance in its product range. Earnings growth is expected to be high at a <keyword id="107168" type="ORGANIZATION" weightage="40" keywordseo="CAGR">CAGR</keyword> of 36.9 per cent over 2013-15. 
 Adani Ports and SEZ: <keyword id="48085" type="CITY" weightage="40" keywordseo="Credit-Suisse">Credit Suisse</keyword> initiates coverage with ‘outperform’ rating as the release of corporate guarantees for Abbot and continuation of strong volume growth at Mundra are the key catalysts. 
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Ipca Laboratories Ltd: Edelweiss maintains ‘BUY’ rating on the stock as the domestic business is gaining traction and will continue to grow at a sustainable 16-17 per cent over the next two years. We forecast 24 per cent EPS CAGR over 2013-16. 
 Sobha Developers Ltd: <keyword id="6361649" type="CITY" weightage="40" keywordseo="Goldman-Sachs">Goldman Sachs</keyword> retains ‘BUY’ rating on the stock as the company will continue to witness a robust revenue growth and operating cash flow since the rolling 8-quarter pre-sales momentum remains strong. 
 <keyword id="201473" type="COMPANY" weightage="40" keywordseo="HDFC-Bank-Ltd">HDFC Bank Ltd</keyword>: IIFL upgrades the stock to ‘BUY’ as the mobilisation of <keyword id="91029" type="ORGANIZATION" weightage="40" keywordseo="FCNR">FCNR</keyword> (B) deposits will enhance competitiveness and lead to significant improvement in earnings and profitability over the medium term. 
 Sintex Industries Ltd: <keyword id="2013974" type="UNKNOWN" weightage="40" keywordseo="Sunidhi-Securities-Ltd">Sunidhi Securities Ltd</keyword> recommend ‘BUY’ as Sintex enjoys an early-mover advantage in businesses that are geared towards social sector spending in India, which is likely to continue. The company is poised to accelerate business growth. 
 <keyword id="192306" type="CITY" weightage="40" keywordseo="Britannia-Industries-Ltd">Britannia Industries Ltd</keyword>: <keyword id="6358584" type="CITY" weightage="40" keywordseo="HSBC">HSBC</keyword> has initiated coverage of <keyword id="6359432" type="PERSON" weightage="40" keywordseo="Britannia">Britannia</keyword> Industries Ltd with an 'overweight' rating and a price target of Rs 1,100, citing the company's strength in the fast-growing mid-to-premium segment in biscuits/bakery. 
 <keyword id="233533" type="COMPANY" weightage="40" keywordseo="Cadila-Healthcare-Ltd">Cadila Healthcare Ltd</keyword>: <keyword id="189016" type="CITY" weightage="40" keywordseo="Bank-of-America-Merrill-Lynch">Bank of America-Merrill Lynch</keyword> upgraded the stock to "buy" from "underperform" and raised its target to Rs 1,000 from Rs 705, saying the worst is behind and earnings will accelerate from fiscal 2015. 
 The investment bank also expects that Cadila is likely to get 20 or more drug approvals from the <keyword id="6356255" type="ORGANIZATION" weightage="40" keywordseo="US-Food-and-Drug-Administration">US Food and Drug Administration</keyword>, and that it expects domestic sales to recover in fiscal 2015. 
 
(The above report is compiled from inputs from ET Wealth publication dated 13 January 2014.)

You Searched For "FCNR" and got 5 results

NRI deposits in Gujarat passes Rs 50,000-crore mark

BI India Bureau

RBI's moves to boost forex inflows could have an impact on domestic borrowing rates

IANS

IDBI Bank revises interest rates on term deposits, introduces limited-period 500-day fixed deposit

IANS

RBI tries to boost forex reserves by easing NRI deposit norms

IANS

Ten Stocks That Can Return Upto 50% In 2014

Economic Times

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