Latest news with #currentaccount
Times of Oman
12 hours ago
- Business
- Times of Oman
India records $13.5 billion current account surplus in Q4-FY25
Mumbai: India's current account recorded a surplus of $13.5 billion (or 1.3 per cent of GDP) in the January-March quarter of 2024-25 as compared with $4.6 billion (or 0.5 per cent of GDP) in the same quarter of 2023-24, RBI data showed Friday. Reportedly, the country's current account posted a surplus for the first time in four quarters. In the October-December quarter of 2024-25, the current account was in a deficit of USD 11.3 billion (1.1 per cent of GDP). Merchandise trade deficit, at USD 59.5 billion in Q4 2024-25, was higher than USD 52.0 billion in Q4 2023-24. However, it moderated from USD 79.3 billion in Q3 2024-25. Net services receipts increased to USD 53.3 billion in Q4 2024-25 from USD 42.7 billion a year ago. Services exports have risen on a year-on-year basis in major categories such as business services and computer services. Net outgo on the primary income account, primarily reflecting payments of investment income, moderated to USD 11.9 billion in Q4 2024-25 from USD 14.8 billion in Q4 2023-24. Personal transfer receipts, mainly representing remittances by Indians employed overseas, rose to USD 33.9 billion in Q4 2024-25 from USD 31.3 billion in Q4 2023-24. In the financial account, foreign direct investment (FDI) recorded a net inflow of USD 0.4 billion in Q4 2024-25 as compared to an inflow of USD 2.3 billion in the corresponding period of 2023-24. Foreign portfolio investment (FPI) recorded a net outflow of USD 5.9 billion in Q4 2024-25 as against a net inflow of USD 11.4 billion in Q4 2023-24. In the entire year 2024-25, India's current account deficit, at USD 23.3 billion (0.6 per cent of GDP) was lower than USD 26.0 billion (0.7 per cent of GDP) during 2023- 24, primarily due to "higher net invisibles receipts." Net invisibles receipts were higher during 2024-25 than a year ago on account of services and personal transfers, RBI said. Aditi Nayar, Chief Economist and Head - Research and Outreach, ICRA Limited, said, "While the current account balance expectedly reported a seasonal surplus in Q4 FY2025, the size of the same overshot our expectations, amid a surprise dip in primary income outflows in the quarter. This led to the unexpected narrowing in the CAD to 0.6 per cent of GDP in FY2025 from 0.7 per cent in FY2024." "Amid expectations of a widening in the merchandise trade deficit as well as a moderation in the services trade surplus in Q1 FY2026 vis-a-vis Q4 FY2025, we expect the current account to revert to a deficit in the ongoing quarter, printing at 1.3 per cent of GDP. We foresee India's current account deficit to average 1 per cent of GDP in FY2026, assuming an average crude oil price of USD 70/barrel for the fiscal, which is eminently manageable in spite of the prevailing global uncertainties," added Nayar. In another news, the Reserve Bank of India, in consultation with the State Governments/Union Territories (UTs), announced today that the quantum of total market borrowings by the State Governments/UTs for the quarter July - September 2025, is pegged to be Rs 2.86 lakh crore.
Reuters
17 hours ago
- Business
- Reuters
India posts first current account surplus in four quarters, central bank says
MUMBAI, June 27 (Reuters) - India's current account posted a surplus for the first time in four quarters in the January-March period, helped by higher services exports, the central bank said on Friday. The current account surplus (INCURA=ECI), opens new tab stood at $13.5 billion, or 1.3% of GDP (INCAPA=ECI), opens new tab in the fourth quarter of the fiscal year 2024-2025 versus the polled estimate of $8.5 billion, or 0.9% of GDP. The surplus compares with a deficit of $11.3 billion or 1.1% of GDP in the preceding quarter, the Reserve Bank of India said in a statement. The current account had registered a surplus of $4.6 billion or 0.5% of GDP in the same quarter a year ago. For the full fiscal year 2024-25, the current account deficit stood at $23.3 billion, or 0.6% of GDP, against $26 billion, or 0.7% of GDP in the previous year, on the back of higher net invisible receipts. "Apart from persistent strength in services exports, spike in remittances this year to a record high $123 billion was a key driver," said Kanika Pasricha, chief economic adviser at Union Bank of India. Pasricha expects full-year current account to log a deficit of 1.2% of GDP amid global trade tensions, with trade deals being "on a close watch." India's net services receipts increased to $53.3 billion in the fiscal fourth quarter from $42.7 billion a year earlier, contributing to the surplus, the RBI said. "Services exports have risen on a year-on-year basis in major categories such as business services and computer services," the central bank said. Personal transfer receipts, which are mainly remittances by Indians employed overseas, increased to $33.9 billion from $31.3 billion a year ago. Meanwhile, the merchandise trade deficit (INTRDQ=ECI), opens new tab widened to $59.5 billion, from $52 billion a year earlier, the RBI said. The country's balance of payments (INBOP=ECI), opens new tab was at a surplus of $8.8 billion in the March quarter, compared with a surplus of $30.8 billion a year earlier. The balance of payments recorded a deficit of $5 billion for 2024-25, compared with a surplus of $63.7 billion in the previous year. "With the current account deficit at modest levels, the swing factor for balance of payments will be the strength of financial flows, particularly portfolio and net FDI inflows, after a weak patch last year," said Radhika Rao, executive director and senior economist at DBS Bank.
Bloomberg
17 hours ago
- Business
- Bloomberg
India Posts Current Account Surplus as Trade Gap Narrows
India's current account returned a better than expected surplus in the January-March quarter as trade deficit narrowed following the revision of gold import data. The surplus in the broadest measure of trade in goods and services was $13.5 billion, or 1.3% of gross domestic product in the period, according to Reserve Bank of India data released Friday.
Finextra
4 days ago
- Business
- Finextra
Bank of Ireland launches kids account
Bank of Ireland has launched a new current account designed for children and young teens between the ages of seven and 15. 0 Family or friends can lodge money directly into the 'Smart Start' account and, uniquely in the Irish market, parents/legal guardians can set up an account for each of their children for free. The account, which is owned by the parent/legal guardian, comes with extensive parental controls and safeguards, including spend limits and alerts, as well as access to Bank of Ireland's 24/7 fraud team. There is no monthly fee, the child has access to their own app and debit card, and deposits can be made online and in 1000 locations across Ireland, including Bank of Ireland branches and An Post locations. Customers can also open a 'Smart Start Money Pot' as part of their application. This is a separate deposit account managed by the parent/legal guardian, with a variable interest rate of 2.0% AER. Susan Russell, CEO Retail Ireland, Bank of Ireland says: 'We designed the Smart Start Account so children and young teens can learn real-life money skills and build good spending and saving habits. "We want to safeguard children from the increasing threat of fraud, so we included extensive protective features to enhance their financial wellbeing, including access to our 24/7 fraud helpline.'
Finextra
4 days ago
- Business
- Finextra
Zopa launches current account
Half a decade after pivoting from P2P lending to become a bank, Zopa has entered the UK current account market. 0 The mobile-first flagship Biscuit account can be opened within minutes, with automated onboarding, with customers getting instant access to virtual cards and the ability to link external accounts. Zopa claims Biscuit will earn customers an average £256 in cash back and interest a year, with 7.1% AER on up to £300 deposits a month, 2% AER interest on all balances, and 2% cashback on bills. Zopa is banking on the generous terms winning over customers, with research commissioned by the bank showing that a quarter of Brits strategically chase cashback offers, while nearly one in five have multiple bank accounts and financial products in a bid to find value, dodge fees, or simply get something back for their loyalty. A P2P lending pioneer, Zopa pivoted to become a bank in 2020 and has since amassed 1.5 million customers, lending more than £13 billion and securing two straight years of profitability. Jaidev Janardana, CEO, Zopa Bank, says: 'Stepping into everyday banking is a natural next step in Zopa's mission to build the Home of Money for its customers. We believe that British consumers deserve better than having to constantly chase deals and accept complexity or poor experience."
