Here’s An Opinion On:
Submitted by: Chirsty Paull
The Indian currency lost nearly 20% against the dollar since the start of the year to hit a record low of 68.85 earlier this week. Many factors are working to strengthen the Rupee. With around three Lac Keralites who work in foreign countries, close to 90 per cent of them in the Middle East countries are sending much-needed foreign exchange into the country like never before, and most of this money is expected to be spent on cars, jewellery, clothes and other consumer items. Real estate and stock markets are not seen as strong investment options in the current scenario.
NRIs’ deposits with banks in Kerala jumped 14.4% in three months to a record Rs 75,700 crore as on June 30. And marketers of everything from cars and electronics to jewellery and clothes expect a jump in sales in Onam next month.
The deposits at the end of corresponding period in 2011 totaled Rs.45, 937 crore. These figures were made public at the 109th meeting of the State Level Bankers Committee and were shown in many Kerala News papers.
Maximum deposits were done in the State Bank group, which attracted 40.58 per cent or Rs.25,445 crore of the total deposits. The private sector banks aggregated a total NRI deposit of Rs.23.395 crore.
The semi-urban areas of Kerala accounted for 62.85 per cent of the deposits followed by 31.34 per cent in the urban areas with the rural Diaspora accounting for a mere 5.81 per cent of share in the deposits.
As per The Malayalam News, Kerala is the top remittance receiving state in the country. In 2011, total remittances were around Rs 62,708crore, accounting for nearly 31 % of the state income. NRIs are queuing up before banks and exchange houses in the Middle East to send money back home to take advantage of rupee’s free fall this year, particularly since mid May when the US announced plans to roll back its stimulus package. And by doing this they are helping the Indian government.
Now with the Rupee recovering, a poll suggests the rupee will stabilize at 66 to the dollar by the end of September, while technical charts also point to a period of relative calm. Also, sentiment has also improved since Reserve Bank of India Governor Raghuram Rajan unveiled a slew of proposals to support the rupee and open up markets on Wednesday, providing a breath of fresh air for investors unnerved by the country’s worst economic crisis in two decades. But if the Rupee freefall continues, the foreign currency coming via NRI s may work as balm which makes this NRI community form Kerala very important for the country in this desperate situation.
The deposits at the end of corresponding period in 2011 totaled Rs.45, 937 crore. These figures were made public at the 109th meeting of the State Level Bankers Committee and were shown in many Kerala News papers.
Maximum deposits were done in the State Bank group, which attracted 40.58 per cent or Rs.25,445 crore of the total deposits. The private sector banks aggregated a total NRI deposit of Rs.23.395 crore.
About the Author: The author is a news and media researcher in The Malayalam Channel Department of Madhyamam. He has five years experience in electronic news and media in the field of Public Relations and Media Relations. His qualifications include a Master in Journalism and Mass Communication, had special paper Advertising and Public Relations.(
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Source:
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