‘Indian residents’ overseas financial assets rose $31.9 billion’

Foreign-owned assets in India increased by $37.3 billion during the July-September quarter (Q2), according to RBI data.

Indian residents’ overseas financial assets rose $31.9 billion, almost three-fourths of which came from build-up in reserve assets. This partly reflects the allocation of special drawing rights (SDRs) by the International Monetary Fund (IMF) in August 2021, the Reserve Bank of India (RBI) said.

The regulator on Friday released data relating to India’s International Investment Position (IIP) at end-September 2021.

The International Monetary Fund describes a nation’s IIP as showing the value of financial assets of residents of an economy that are claims on non-residents, or are gold bullion held as reserve assets; and of the liabilities of residents to non-residents.

Reserve assets accounted for 68.5% of India’s international financial assets in September 2021. The share of debt liabilities in total liabilities increased marginally to 47.8%. The ratio of international assets to international liabilities improved to 73.6% from 70.4% a year earlier. Net claims of non-residents on India increased by $5.4 billion during July-September 2021.

‘HFC applies for licence’

Separately, the RBI also said that West End Housing Finance Ltd. had applied for ‘on tap’ licence to set up a Small Finance Bank in the private sector.

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