The NEWS of yesterday:
The Reserve Bank of India has given approval to eight banks to float foreign exchange products for resident Indians under the $25,000 scheme.
I distinctly remember the days when the employees of Indian banks found the Non-Resident deposits to Indian banks. Anything other than Indian rupees was looked at with a cautious approach. Non -Resident deposits in Indian rupees were fine. But when the NRI becomes a ‘resident’ after settling down in his native place, the concept of changing the status of his Savings account to Non-resident (ordinary) was always confusing at the clerical level at least.
The senior staff who had passed the CAIIB exams with a ‘tough’ paper in forex were comfortable in handling such accounts. But these staffs were deployed at the most important department -Credit!
But this new scheme is the reverse of the concept I was talking about in the last para. Resident Indians are allowed to invest in forex up to $25000. In deposit based products, not in mutual fund products.
Perhaps this news in Banknet India spells out the rules clearly about the scheme.
IMP. NOTE : This blog was started on Sep.17, 2005. The above post is typed and inserted into this blog from my diary entry of the same date as the date of posting.
Posted by Revathi 