Don't depend on the diaspora

India's banking system, struggling with a sluggish economy and large loan losses, may lose the only friend it has had the past couple of years: the diaspora. For every rupee of time deposits that Indian banks have raised from residents in the past year, 13 paise has come from the estimated 25 million people of Indian origin who live in other countries. On all but a fraction of that amount, the currency risk lies with the depositor.

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