Rupee crash: Banks blame NRI investors for not assessing risks

General, News

Investors, who took exposure to leveraged non-resident rupee deposit products in India and stand to lose heavily from the recent fall in the rupee, told Gulf News that banks sold these products as simple fixed deposits and now they stand exposed to huge currency risks.

Banks, on the other hand, said investors had been made aware of the risks of currency depreciation and were advised to take hedges against exchange rate losses.

A few bankers who spoke to Gulf News on condition of anonymity said while they are fully aware of the difficulties faced by some of their customers, the structure of the products makes them helpless.

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