Now NRIs are getting their money over to India as banks here aren't quite as leveraged and are largely safe (at least the public sector fellows). Interestingly while Indian banks don't have an FDIC like structure - the RBI guarantees 100K rupees worth of money in all accounts. But then the government owns a large chunk of banks like SBI, PNB, Syndicate/Canara/Corporation Bank etc. and there might be a depositor cushion there.
If this is the trend going forward, every country is going to want to guarantee it's bank deposits - otherwise capital will move to safety. Either that, or Ireland is going bust.
Related posts:
- Liquid Funds are better than Fixed Deposits The increase in Dividend Distribution Tax (DDT) in Budget 2006...
>I will not attach much importance to few NRI’s seeking safe haven in Indian Banks.
The bigger picture is how Hedge Funds are fleeing away from Emerging Markets in order to meet possible redemptions from their clients. Even Mukesh Ambani cannot stop the bleeding. In the next one year deleveraging by Hedge Funds will see Indian Market Tanks along with Indian Rupee.
Good Luck to NRI depositors.
10.04.08 at 7:07 PM
>Hi ,
I Just wanted to know more about the Rs 100K rule by RBI.
Does this mean we shud spreadout our investments in different accounts? Are we heading to such extreme days ?
10.05.08 at 7:39 PM