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In contrast, NRE deposits rose 41.7 per cent to $5.06 billion, while NRO deposits increased 24.3 per cent to $4.09 billion
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Nearly 80 per cent of NRI deposits are held in repatriable accounts such as FCNR(B) and NRE, making them responsive to currency trends and interest rates
Non-Resident Indian (NRI) deposit inflows fell 16 per cent to $11.20 billion during April–December FY26, compared with $13.33 billion in the same period last year, reported thehindubusinessline.com.
The drop comes after two years of strong growth and suggests that inflows are returning to more normal levels.
Deposits had surged 72.7 per cent in FY24 and 42.8 per cent in FY25, recovering sharply from a steep 61.1 per cent contraction in FY22. Over the past decade, NRI deposit flows have been uneven, swinging between strong growth and sharp declines.
The report quoted Professor Anil Sood of the Institute for Advanced Studies in Complex Choices, who said inflows had stabilised at around $6 billion annually between 2017-18 and 2022-23, before rising to $9 billion in 2023-24 and $13 billion in 2024-25. He believes the current fall may simply reflect a return to average levels below $10 billion.
Vivek Iyer of Grant Thornton Bharat, quoted in the report, linked the slowdown to expectations of a weaker rupee amid global uncertainty.
According to him, many investors delayed deposits in anticipation of getting more rupees for the same amount of dollars. He described the shift as tactical rather than long-term.
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Category-wise data shows that the fall was mainly driven by a sharp 68.4 per cent decline in FCNR(B) deposits to $2.04 billion
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These foreign currency term deposits are sensitive to interest rate changes and investor expectations
In contrast, NRE deposits rose 41.7 per cent to $5.06 billion, while NRO deposits increased 24.3 per cent to $4.09 billion. Nearly 80 per cent of NRI deposits are held in repatriable accounts such as FCNR(B) and NRE, making them responsive to currency trends and interest rates.
Experts expect inflows to remain stable rather than surge, depending on rupee movements and future rate decisions by the Reserve Bank of India.
