Non-resident Indians deposit less in Kerala banks

Thiruvananthapuram -- For various reasons ranging from unattractive interest rates to better investment options elsewhere, Keralites working abroad are not saving their money in the Kerala banks.

Because of this trend, of late, deposits by non-resident Indians (NRIs) from Kerala in the state's banks have not touched the expected mark, said state Finance Minister Thomas Isaac Monday here.

Isaac informed the Kerala Assembly that the total deposit by NRIs touched Rs.306.71 billion as on March 31, this year.

"We are working out new schemes for NRIs so that they could invest in the state. We are considering options where they could invest in the hi-tech companies in the state," he said.

"The marginal increase from Rs.291.2 billion in 2004-05 to Rs.306.71 billion in the last fiscal, clearly shows that there are options for the NRIs to park their funds elsewhere," said a banker.

"Unattractive interest rates, better investment options and parking of funds in Europe by NRIs have been the reasons for the fall in non-resident deposits in Kerala banks," he added.