capital flows

Foreign banks seek leeway on LEF rules for Nostro accounts

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At a time when overseas capital flows have been firm, foreign lenders have requested the banking regulator for flexibility in compliance with the central bank’s Large Exposures Framework (LEF), particularly in handling certain types of accounts that facilitate global transactions. Banks have requested the Reserve Bank of India (RBI) to consider excluding Nostro accounts from … Read more

g-sec: India-US g-sec yield gap at all-time low, yet there’s no stopping inflows

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Mumbai: The interest rate differential between domestic and US sovereign bonds has shrunk to its lowest levels in at least 17 years, an occurrence that textbook theory says should drive foreign capital out of India. Overseas investors, however, are in no mood to shun the world’s fastest-growing major economy. If anything, an improvement in India’s … Read more