Easier NRI norms sought

Tytler wants RBI to retain arbitrage opportunities for NRIs

 The new ministry under Jagdish Tytler has also decided to pitch in with the finance ministry to enlarge the window of opportunities for NRIs and People of Indian Origin (PIO) in the domestic stock market. The ministry has said NRIsPIOs too should be allowed to repatriate profits abroad on the same terms as foreign institutional investors.

 Over the past couple of years, the finance ministry and Reserve Bank of India (RBI) have reduced interest rates on the non-resident external (rupee) (NRE) deposits on three occasions, to align them with the London inter-bank offer rate (Libor) and remove arbitrage opportunities. It was found that NRIs were parking large sums of money in these accounts.

 As on December, 31, 2003, the total NRI short and long-term deposits was about $30 billion, which is almost 27 per cent of the country