The Hindu Business Line : NRI privileges

It has brought out in unequivocal terms the feelings of a large section of the Indian populace. As far as investments in India by NRIs are concerned, they have always been interest- and never loyalty-bound.

It is well-known that we had a heavy inflow of deposits from our NRI brethren when the rates of interest on our FCNR were higher than what they earned in countries such as Singapore because it helped them use the same deposits to make more money on interest arbitration. Realising this, when the RBI plugged such a loop-hole by bringing in related regulations, these NRIs either pre-closed or withdrew their deposits on maturity, for further placement outside our country.

Similarly, when the Indian Government burnt its fingers by offering the highest coupon for our IMD, a rate which up until now has never been offered by any other country, to their citizens on foreign currency deposits, our kitty swelled and spilled over with their generous deposits. However, that on maturity of the same now, there is a serious flight of these deposits because the rates of interest offered by us now are low is also well-known.

This is the loyalty NRIs have towards our country. It is purely commercial. As far as giving them voting rights is concerned, it would be a mockery of democracy to give them this privilege.

Tharcius S. Fernando

Chennai

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