The RBI relaxed FCNR(B) deposit norms to attract foreign inflows amid concerns over the balance of payments and rupee pressure
Oil prices have fallen and tensions in West Asia have eased, reducing some of the risks that prompted the measures
Banks can offer leveraged structures on FCNR(B) deposits, making them more attractive for wealthy NRI investors
India's forex reserves remain robust, raising questions about the need for costly foreign-currency mobilisation
How much money will flow in? Will it affect the currency market? And how will future repayments be managed?
Short-term solutions should not overshadow reforms needed to strengthen India's external sector resilience