Reserve Bank of India (RBI) Governor Sanjay Malhotra has indicated that discussions around a possible interest rate hike are premature at this stage, emphasizing that the central bank will continue to closely monitor economic data before making any policy decisions.
Several Indian banks, including HDFC Bank, Yes Bank, and AU Small Finance Bank, have increased interest rates on foreign currency deposits for Non-Resident Indians (NRIs) following the Reserve Bank of India's recent relaxation of FCNR(B) deposit regulations. The move is aimed at attracting greater foreign currency inflows amid ongoing pressure on the rupee and foreign exchange reserves.
