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The Lok Sabha today passed the Citizenship (Amendment) Bill 2005, paving the way
for grant of dual citizenship to the non-resident Indians (NRIs). The Bill,
replaces the Citizenship (Amendment) Ordinance 2005. It has already been passed
in the Rajya Sabha.
Source : The Tribune
AUGUST 16 , 2005.
NRIs send 10% less money home in FY05
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NEW DELHI: Remittances to India from abroad have dropped during '04-05.
According to the latest RBI bulletin, the figure for transfers from abroad in
'04-05 is $21bn - a 10% drop from $23 bn in '03-04.
According to RBI, the redemption of Resurgent India Bonds (RIB) in '03-04 was
the primary reason for an increase of around 40% in the remittances figure
during that year. As the US has traditionally been the largest source of
remittances to India, economists feel the reason for the decline could also be a
rise in short-term US interest rates in '04. "With short-term interest rates in
US going up in '04, the incentive to send money to India has gone down." Rajiv
Kumar, chief economist, Confederation of Indian Industry, said.
The RBI slashed the Indian interest rate on NRI deposits in '04 so as to
discourage arbitrage on the interest rate differential between the US dollar and
the rupee. "The fall in interest rates on NRI deposits in India could be
responsible for the fall in remittances figure this year as compared to the last
year's figure," says Mr Berry.
In the year preceding '04-05, there had been a steady growth in remittances to
India. From a meagre $2 bn in 1991, the transfers grew to over $3 bn in '00-01.
After a marginal decline in '01-02 to $12.5 bn, the figure jumped to over $16 bn
during '02-03. This was then followed by an increase of almost 40% to $23 bn in
'03-04. While official transfers have consistently risen with time, the jump
over the past 2-3 years came from increasing private transfers.
Source : The Economic Times
JUNE 16 , 2005
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