Based on the current momentum, the funds likely to be raised through the RBI's relaxed window would be $3.5 billion-$4 billion.
The flow of deposits from non-resident Indians (NRIs) hit a four-year low in the financial year 2020-21 mainly due to contraction in foreign currency deposits, latest data released by the Reserve Bank of India (RBI) shows. Total NRI deposits during FY21 were $7.3 billion as compared to $8.6 billion in FY20 - the lowest since 2016-17, when such deposits had contracted by $12.3 billion. Indian banks have three kinds of deposit accounts where NRIs or PIOs (persons of Indian origin) can park their funds: non-resident external-rupee account (NRE); non-resident ordinary rupee account (NRO); and foreign currency non-resident bank account (FCNR [B]).
RBI's foreign exchange reserves fell $237.5 million.
Any revision in loan rates would be visible next month.
The move is expected to stabilise yields, volatile in the recent past.
Home and kitchen appliances, electronic products, apparel and B-segment cars stand to gain.
India's foreign exchange reserves are at an all-time high.
2013 foreign currency non-resident deposits to mature in Sep-Nov
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