Brokerage houses are taking full advantage of the Falling interest rates on foreign currency deposits of non-resident Indians (NRIs). Escalating their reach in the overseas markets, broking houses are tempting the NRI community to invest in the flourishing domestic equity markets.

The reports from RBI shows that the annual inflow of NRI deposits in the country for 2006-07 was $3,895 million in 2006-07, an increase from $2,789 million in 2005-06, with NRIs major from US, UK, UAE

Brokerage houses are also looking to expand aggressively in overseas markets to tap NRIs. The immense rise in the value of rupee, the strongest since February 1998, banks have reduced the rates on FCNR deposits to about 3.8 per cent for two-year, dollar-denominated deposits.

For NRI rupee-denominated deposits, rates were down by at least 15 basis points or about 4.45 per cent for two-year deposits as against 8.85 per cent for domestic depositors. According to Mr Kaushal Sampat, chief operating officer, Dun & Bradstree, "NRI investments would soar in the coming years as a consequence of the depreciating dollar."

The benchmark stock indices have raised 45 per cent-plus annually over the last three years and the returns are expected to continue as a result of the India growth story.

Apart from massive investment in property, NRIs also taking keen interest in company deposit schemes.