MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHRI ANANT G. GEETE)
(a)& (b) India`s foreign exchange reserves at the end of June, 2002
amounted to US $58.04 billion and consisted of foreign currency
assets of US $54.70 billion, gold of US $3.33 billion and SDR 10 million.
The foreign exchange reserves with the Reserve Bank of India, which have
been accumulated over the years, represent the net outcome of India`s
international transactions on both the current and capital accounts of
balance of payments. Therefore, it is not possible to apportion the
stock of foreign exchange reserves to any single or group of transactions,
including the NRI deposits. The total outstanding NRI deposits with the
banks excluding Non-Resident (Non-Repatriable) Rupee Deposits at the end
of May 2002 stood at US $19.18 billion.
(c)&(d) As a sequel to the announcement of the Monetary and Credit
Policy for the year 2002-03, on April 29, 2002, interest rate on
Foreign Currency Non-Resident(Banks) [FCNR(B)] deposits have been
reduced by 25 basis points from LIBOR/SWAP rates for corresponding
maturity.
(e),(f),(g)&(h) The policy of foreign exchange reserves management
is judiciously built upon a host of identifiable factors and other
contingencies. These factors, inter alia, include: the size of the
current account deficit; the size of short-term liabilities; the possible
variability in portfolio investment and other types of capital flows; the
unanticipated pressures on balance of payments arising out of external
shocks and movements in the repatriable foreign currency deposits of
Non-resident Indians. The Government and the Reserve Bank of India
continue to ensure that, the quantum of reserves in the long run is
consistent with the growth of the economy, the size of the risk-adjusted
capital flows and national security requirements.
