New Delhi, Oct 3: The government of India is planning to introduce a special deposit scheme for non-resident Indians to boost dollar inflows.
News agency NewsRise reported on Wednesday, citing an unnamed finance ministry official.
Economic Affairs Secretary Subhash Chandra Garg had said in June, If needed, the government could raise funds through foreign currency non-repatriable (FCNR) deposits, sovereign bond or other routes through to increase forex reserves, he added. Also Read | Indian Rupee at fresh record low, now at 73.33 versus the US dollar "If we assess at any stage that we need to buttress or refurbish our reserves, the options are open," Garg said. The news about NRI deposit scheme is doing rounds amidst after the Indian rupee opened at all time low 73.24 per dollar on Wednesday as it crossed 73 for the first time. Also Read | India's hiking tariffs on 19 items will hurt its consumers, say Chinese experts Traders were concerned that a rise in US interest rates and expensive oil could lead to fiscal slippage, increase inflationary pressures and raise the chances of the Reserve Bank of India (RBI) increasing interest rates in its monetary policy review later this week. Rupee continued to remain under pressure and today is expected to open at fresh record low levels following sharp surge in global crude oil prices. Brent crude is now at four-year high levels on worries that global supplies will drop due to Washington's sanctions on Iran, said Motilal Oswal.