RBI Data: NRI FCNR(B) Deposits Surge to $36.7 Billion in 52 Days
UPSC / SSC current affairs note · Economy
Why in news
The Reserve Bank of India (RBI) released fresh data showing that NRI FCNR(B) deposits have reached $36.7 billion in just 52 days. This surge has already surpassed the $26 billion raised during the 2013 FCNR(B) campaign, with two months still remaining before the scheme closes.
Background
The FCNR(B) scheme was introduced to attract foreign currency deposits from Non-Resident Indians (NRIs). In 2013, a similar campaign was launched to shore up India's foreign exchange reserves during a period of currency volatility. The current campaign appears to be even more successful, indicating strong NRI confidence in the Indian economy.
Key facts
FCNR(B) deposits reached $36.7 billion in 52 days.
The current campaign has surpassed the $26 billion raised in the 2013 drive.
The scheme still has two months remaining before it closes.
FCNR(B) stands for Foreign Currency Non-Repatriable (Bank) deposits, but actually it is Foreign Currency Non-Resident (Bank) deposits.
The scheme allows NRIs to deposit foreign currency with banks in India, with the deposit and interest in the same foreign currency.
The surge indicates strong NRI confidence in the Indian economy and the rupee.
The RBI's data release highlights the success of the current FCNR(B) campaign.
Prelims pointers
- FCNR(B): Foreign Currency Non-Resident (Bank) deposits
- RBI: Reserve Bank of India
- NRI: Non-Resident Indian
- Scheme closure: two months remaining
- 2013 campaign: raised $26 billion
- Current campaign: $36.7 billion in 52 days
Mains angles
- Discuss the role of FCNR(B) deposits in stabilizing India's foreign exchange reserves.
- Critically examine the impact of NRI deposit schemes on the Indian economy.
- Analyze the factors contributing to the success of the current FCNR(B) campaign compared to 2013.