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Weak Re boosts foreign currency FDs
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Attracted by a weak rupee, NRIs significantly increased their foreign currency deposits, with net inflows rising 11% to $7.1 billion in FY25. This surge follows previous outflows during the pandemic. Relaxed interest rate caps by the RBI also contributed to the growth of FCNR (B) accounts, offering tax-free interest and protection from exchange rate fluctuations.
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