As per the latest Reserve Bank of India (RBI) data, the flow of funds from Indians working abroad into non-resident Indian (NRI) bank accounts saw a sharp rise of 42.8% to $13.33 billion between April and December 2024, compared to $9.33 billion in the same period of 2023.
Total outstanding NRI deposits increased to $161.8 billion by December 2024, up from $146.9 billion a year earlier.
NRI deposit schemes comprise Foreign Currency Non-Resident (FCNR) deposits, Non-Resident External (NRE) deposits, and Non-Resident Ordinary (NRO) deposits, maintained in rupees.
The highest inflow of $6.46 billion recorded in FCNR(B) deposits during April-December 2024, nearly double the $3.45 billion deposited in the same period last year.
The outstanding balance in FCNR(B) accounts stood at $32.19 billion by December 2024.
These accounts allow NRIs to maintain fixed deposits in freely convertible foreign currencies, protecting funds from currency fluctuations.
NRE deposits saw an inflow of $3.57 billion during this period, compared to $2.91 billion a year earlier.
The outstanding amount in NRE deposits reached $99.56 billion in December 2024.
NRO deposits recorded inflows of $3.29 billion in April-December 2024, up from $2.97 billion in the same period last year.
The total outstanding amount in NRO deposits stood at $30.04 billion in December 2024.
These accounts are rupee-denominated and used by NRIs to manage income earned in India.
To attract more foreign currency and support the rupee against the US dollar, the RBI raised the interest rate ceiling on FCNR(B) deposits in early December, enabling banks to offer higher returns on these accounts.
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