The Reserve Bank of India announced on August 8 that loans against new FCNR(B) and NRE deposits will be excluded from priority sector lending (PSL) calculations.
This policy change is designed to provide banks with greater flexibility in managing their liquidity and incentivizing the mobilization of fresh foreign currency deposits.
Financial institutions are expected to adjust their lending strategies immediately to align with these new regulatory guidelines, potentially impacting interest rates for NRI depositors.