Private sector lender ICICI Bank launched two new products – loan against deposits (LAD) and bonds in dollars – for non-resident Indians at its GIFT City Branch in Gujarat. The bank is the first to offer these products to GIFT City.
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Main characteristics of these offers:
Loan on Deposits (LAD): LAD looks like a foreign currency loan against deposit in India (including Rupee NRE FD).Customers can avail of LAD for their need short-term liquidity without having to prematurely close their term deposits and thus avoid paying a penalty for breaking a deposit. They can avail themselves up to 95%* of the value of their deposit. Through a simple documentation process, clients can obtain a flexible mandate with fixed or floating interest rates.
Dollar Bonds: It’s a alternative investment option for NRIs, where they can reserve dollar bonds through ICICI Bank in GIFT City. The Bank offers a cohort of more than 50 reputable issuers/companies for these bonds.
What was said:
Mr. Sriram H. Iyer, Head – International Banking Group, ICICI Bank said, “We at ICICI Bank continue to launch solutions to meet customer needs. In accordance with this philosophy, we offer Dollar bonds and loans against deposits to our NRI clients through our branch in GIFT City. Foreign currency bonds are one of the preferred investment options for NRI clients. We want to offer our customers the ease of doing digital banking transactions, giving them a smooth journey and a hassle-free experience. As we expand our horizons, we are excited to see what lies ahead while continuing to create value for our customers in all geographies, in line with regulatory requirements. »
GIFT City’s other key offerings for NRI customers:
Global current account: It’s a not bearing interest account that does not require a minimum balance. It helps NRIs to deposit money in India in foreign currencies like USD, EUR, GBP.
Global Savings Account: NRIs can deposit money for in the short term and earn interest on that savings account.
Term deposits: They are similar to Deposits of non-residents in foreign currency (FCNR) with a minimum blocking period of seven days compared to one year for the FCNR in India. Clients can deposit in currencies such as USD, EUR, GBP.
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