ICICI Bank has launched two new products, loan against deposits (LAD) and dollar bonds, for its NRI customers, thus, adding to its digital banking services. The products were launched at the bank’s branch at GIFT City, a Gujarat-based emerging global financial and IT services hub.
Speaking at the launch, Sriram H. Iyer, Head – International Banking Group, ICICI Bank said, “We are offering Dollar Bonds and Loan against Deposits to our NRI customers through our branch at GIFT City. Foreign currency bonds are one of the preferred investment options amongst NRI clients. We want to provide our customers with the ease of banking digitally, driving a seamless journey and a hassle-free experience."
Loan against deposits (LADs): These are essentially loans in foreign currency against domestic bank deposits. These deposits include fixed deposits of Non-Residential External (NRE) accounts in Indian currency. This feature will aid customers forced to close their term deposits to meet their short-term cash requirements. The timely loan availability will not only allow them access to enough cash as and when required but also help them avoid paying penalties for premature closing of the term deposits. This feature will allow NRI customers of this bank to avail of loans up to 95 percent of the amount invested in term deposits. The documentation process is simple, thus, allowing customers to avail of loans at fixed or floating interest rates, depending on their requirements.
Dollar bonds: This is another kind of investment wherein the bank’s NRI customers can book dollar bonds through the bank. The bank offers more than 50 marquee issuers for these bonds at its branch.
The other key offerings of this bank for NRI customers seeking services from this branch include:
Global current account – A non-interest savings account that allows NRIs to deposit their money in foreign currencies without worrying to maintain any minimum balance.
Global savings account – A short-term deposit savings account that NRIs can use to deposit money for a limited tenure and earn interest on the same.
Term deposits that are similar to foreign currency non-resident (FCNR) deposits with minimum lock-in periods ranging between a week and a year for FCNR in India.
Such product launches and innovations in banking services have now set the tone for India’s banking sector which has stepped up in the recent past, thanks to technological innovations and changes in rules governing the industry.