If you repatriate money to India or invest in the nation, it is a perfect moment to be a non-resident Indian. A falling rupee implies that every dollar you send home is worth more.
A decreasing rupee puts the country’s households at a disadvantage since it raises the cost of imports. Because India’s economy is based on imports, this negatively impacts. On the other hand, a sinking currency can be advantageous for NRIs. You would be receiving more bang for your money with every US Dollar (USD), Emirati Dirham (AED), Australian Dollar (AUD), or other appreciated currency transferred to India.
The laws and restrictions for NRI remittances have been streamlined because they are of tremendous value to the economy during times of currency devaluation. Sending limitations to India have been dramatically increased by remittance firms. Remittances are also projected to rise as NRIs take advantage of the low exchange rate.
When the rupee declines in value, NRIs send more money home because they make more money. NRIs frequently take out loans from overseas and invest the money in India, where interest rates are cheaper, and the value of the US dollar continues to rise.
Depending on their income and budget, the rupee’s decline might benefit NRIs in a variety of ways:
- NRIs with lower income levels might invest in Non-Resident External (NRE), or Foreign Currency Non-Resident (FCNR) bank fixed deposits. NRE deposits pay the same interest as domestic fixed deposits. However, FCNR deposits pay less.
- Banks and asset management firms offer many programs available to higher-income groups. They can invest in stocks, mutual funds, and other securities using these services. When the rupee depreciates, real estate may be a beneficial investment.
- NRI banking solutions are available from a variety of service providers in India. HDFC Bank is one of the most popular financial service providers among them because of the quality of its services and because of its strategic position. Dubai, Bahrain, Abu Dhabi, Kenya, and Hong Kong are among its locations. This resolves the accessibility issue.
