You have seen me earlier make a hue and cry about NRI Fixed deposits in India. These NRI Deposits do give a great return in the long run.
After the mild tremors in the Indian Financial markets, RBI ( Reserve Bank of India) had started this new policy to bring more Foreign currency to India. Which started the rise in interest rates on NRI Fixed Deposits. What I am seeing now is the next phase of the cycle where RBI is happy with what they have brought in and are trying to reduce the interest rates.
Here is an NDTV news item talking about the same. This reduction in 1% ( they call 1% 100 basis points) is a trend that will eventually curb money flows to India for Fixed Deposits.
So, if you plan to take any action on investment in Fixed Deposits in India, do it soon before the March 1st change arrives.
