As India is attracting more and more overseas real estate majors and foreign nationals, bankers have smelt an opportunity for growth. There are around one Lakh foreign nationals working in different segments of Indian economy. Even though this growing population can open bank accounts, albeit with restrictions, there has been no prior effort by any of the banks (nationalized or private) to tap into this segment. For this customer segment, opening accounts or even getting a loan is definitely a cumbersome process.
It may be late but some private banks in India has taken an initiative. They have now started offering foreign nationals presently residing in India, a range of benefits - relationship managers, investment options, global deposits in eight foreign currencies, forward cover to hedge currency risks, remittance solutions, home loans, personal loans and credit card facilities.
According to an estimate, 25,000 expatriates come into India every year. The number is going to increase as the Indian economy has shown a matured sign of growth. People from SAARC countries and commonwealth nations are a major chunk of this population. As international giants like POSCO, Microsoft, IBM have started their operations in India, well-paid executives are also coming here on working Visas.
Now, the banks are extending of up to Rs 5 Lakh, as per the RBI norms. However, the tenure of the loans would dovetail to the tenure of the contract which the person has with the company he has been employed with. NRIs can also avail with the prior approval of the Reserve Bank of India.
Citi Bank has tied up with three mutual funds where foreign nationals working in India can now invest. Some other private banks are in the process of tying up with a few more fund houses. Cities like Bangalore are said to have the largest numbers of foreign national population of around 16,000. This sector is going to have a bright growth prospective.
