According to a recent press release the Reserve Bank of India has said that the Non residents of India (NRIs) or the persons of Indian origin are now allowed to hold their accounts in the country in any convertible currency.
Earlier, Foreign Currency Non Resident (FCNR) bank Account holders were allowed to hold their accounts in certain major currencies such as the Pound Sterling, US dollar, Japanese Yen, euro, Canadian dollar and Australian dollar.
This move by the RBI would help the NRIs to a greater extent to reduce the risks involved in the fluctuations of the major currencies and it also gives them more options in their holding of accounts.
It has been decided that Authorized Dealer Banks in India may be permitted to accept the Foreign Currency Non – Resident Account (Banks) Deposits in any permitted currency.
The RBI is the central banking institution of India and it controls the monetary policy of the rupee. The regulator has recently hiked key interest rates by 25 basis points, which is its 12th such hike since March, 2010. The hike has made auto, home and other loans more expensive.