In FCNR race, banks answer only the biggest depositors
New Delhi, July 13 -- If you're an overseas Indian with over $1 million in equity to leverage and park in a foreign current non-resident bank FCNR(B) deposit, banks are likely to answer your call. If your cheque is much smaller, they may not, three market participants aware of the matter said.
More than a month after the Reserve Bank of India (RBI) announced measures to attract foreign currency inflows, banks are increasingly prioritizing million-dollar-plus FCNR deposits as rising overseas borrowing costs and tighter credit limits make it harder to justify extending nine-times leverage on smaller transactions, they said.
This shift is different from the optimism that followed RBI's 5 June announcement, when banks and analysts expected ...
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