Axis Bank on Tuesday said it has floated a digital US dollar fixed deposit (FD) scheme for NRI customers at the IFSC Banking Unit (IBU) at GIFT City, Gujarat. The FD scheme is first of its kind, and Axis Bank has become the first bank to offer a digital journey for GIFT City Deposits.
From now on, Axis Bank’s NRI clients can invest in US dollar fixed deposits at GIFT City through ‘Open by Axis Bank,’ the mobile banking application offered by the lender.
The US Dollar fixed deposit will offer a wide range of investment tenures from seven days up to ten years, the bank said.
The offering streamlines securing US dollar Fixed Deposits for NRI customers, offering them an end-to-end digital paperless solution, removing the requirement for physical documentation.
Besides seamlessly opening an FD account anytime from anywhere, customers can also track and manage their FD digitally, it said. With attractive interest rates, Axis Bank provides NRIs with one of the best investment opportunities, it said.
Customers can also request partial or full premature closure of the FD from the Axis Bank mobile application.
In July 2022, the Reserve Bank of India implemented measures to enhance inflows into NRI accounts. These included easing caps on interest rates for both FCNR (B) and NRE deposits, as well as exempting the maintenance of the cash reserve ratio and statutory liquidity ratio on incremental deposits until November 4, 2022.
As per RBI data, the flow of money into NRIs’ deposits doubled to $7.3 billion in April-November 2023 from $3.63 billion in the same period a year ago. Inflows into Foreign Currency Non-Resident (FCNR) accounts increased to $2.5 billion in April-November 2023 as against an outflow of $199 billion in the same period of 2022, RBI data showed.
The outstanding NRI deposits rose by $1 billion to $144.48 billion at the end of November 2023, up from $143.48 billion in October 2023. They showed a marked increase from $134.5 billion a year ago.
The FCNR deposits stood at $21.86 billion in November 2023, a minor sequential rise from $21.42 billion in October 2023. They were substantially higher than the $16.71 billion recorded a year ago.
Non-Resident External (NRE) deposits stood at $96.79 billion in November 2023, sequentially up from $96.56 billion in October and $95.31 billion in November 2022.
Non-Resident Ordinary (NRO) deposits touched $25.83 billion in November 2023, up from $25.48 billion in October 2023 and $22.46 billion a year ago.
Tags: Axis Bank floats digital opening dollar fixed deposit GIFT City
