Overseas Indians deposited approximately $12 billion in non-resident Indian (NRI) deposit schemes during April-October FY25, nearly doubling the $6.11 billion deposited during the same period last year.
Data released by the Reserve Bank of India (RBI) on Tuesday highlighted this sharp increase in inflows.
As of October 2024, total outstanding NRI deposits reached $162.69 billion, compared to $143.48 billion in October 2023. In October alone, overseas Indians deposited over $1 billion across various NRI schemes.
The three NRI deposit schemes include foreign currency non-resident [FCNR (B)] deposits, non-resident external (NRE) deposits, and non-resident ordinary (NRO) deposits. Among these, FCNR (B) deposits attracted the highest inflows during the period.
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According to RBI data, FCNR (B) deposits received $6.1 billion in inflows during April-October FY25, a significant rise from $2.06 billion in the same period last year. The total outstanding amount in these accounts now stands at $31.87 billion.
FCNR (B) accounts allow NRIs to maintain fixed deposits in foreign currencies for one to five years, protecting funds from currency fluctuations. Recently, the RBI raised interest rate ceilings on FCNR (B) deposits to encourage more dollar inflows and support the depreciating rupee.
NRE deposits, offering high returns on foreign income in rupee terms, saw inflows of $3.09 billion during the period, up from $1.95 billion a year ago. Meanwhile, NRO deposits, meant for NRIs to deposit income earned in India, attracted $2.66 billion, compared to $2 billion last year.
The surge in NRI deposits reflects increased confidence in Indian banking products and aligns with the RBI’s measures to attract foreign capital amid currency volatility.