Foreign-currency non-resident deposit inflows have strengthened after an initially hesitant start. The rise is important because such deposits are closely watched as a signal of confidence from non-resident Indians and diaspora savers, and as a support for India’s external-sector stability.
Banks and policymakers had expected stronger inflows earlier, but latest data suggest that foreign-currency non-resident deposits are now gathering pace. Attractive interest rates and a more stable macroeconomic outlook have helped improve deposit mobilisation.
Why the development matters
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