Recent data from the Reserve Bank of India (RBI) reveals a remarkable uptick in Non-Resident Indian (NRI) deposits, showcasing a robust 70.35% increase to $10.1 billion during the initial ten months of the fiscal year, compared to $5.96 billion in the corresponding period last year
Amidst a backdrop of geopolitical turbulence, the Indian diaspora has surged in their financial contributions to their homeland, propelled by attractive interest rates and a burgeoning confidence in the Indian economy. Recent data from the Reserve Bank of India (RBI) reveals a remarkable uptick in Non-Resident Indian (NRI) deposits, showcasing a robust 70.35% increase to $10.1 billion during the initial ten months of the fiscal year, compared to $5.96 billion in the corresponding period last year.
Of particular note are the Foreign Currency Non-Resident (FCNR) accounts, which have experienced a substantial surge, reaching $4.15 billion from April 2023 to January 2024, a significant leap from $1.28 billion recorded a year prior. As of January 2024, outstanding NRI deposits stand at $147.73 billion, marking a $823 million rise from December 2023 and indicating a notable escalation from $136.82 billion recorded in January 2023, as per RBI sources.
FCNR deposits have ascended to $23.51 billion in January 2024, surpassing the December 2023 figure of $22.81 billion and significantly exceeding the $18.20 billion recorded in January 2023. Despite a minor dip from December 2023, non-resident external deposits totaled $97.46 billion in January, while non-resident ordinary deposits reached $26.74 billion, showcasing consistent growth.
As India continues to navigate through global uncertainties, the unwavering support of its diaspora through increased financial investments and remittances not only strengthens the nation’s economic resilience but also underscores its enduring ties with its expatriate communities worldwide
This burgeoning trend in NRI deposits, especially in FCNR accounts, underlines a growing confidence among NRIs in the Indian economy. These deposits not only bolster the country’s foreign exchange reserves but also reinforce its financial stability amidst global uncertainties.
Meanwhile, outward remittances under the Reserve Bank of India’s (RBI) Liberalised Remittance Scheme (LRS) have surged by 24% year-on-year to reach $27.42 billion in the April-January period of the financial year 2023-24 (FY24), highlighting an increasing trend of international transactions. The LRS scheme, introduced in 2004 with a limit of $25,000, allows resident individuals to remit up to $250,000 per financial year for any permissible current or capital account transaction, or a combination of both, without incurring charges.
In January 2024 alone, overseas remittances reached $2.62 billion, marking a significant 9% increase from the previous month’s figure of $2.40 billion, according to recent data from the RBI. The international travel segment dominated the remittance pattern during the April-January period of FY24, soaring to $14.95 billion, a remarkable 30.67% increase from the corresponding period last year. Following closely were funds allocated for the maintenance of close relatives, totaling $3.95 billion, and overseas education expenses, amounting to $3.04 billion. In January, remittances for overseas education topped the list at $449.46 million, followed by $267.02 million for the maintenance of close relatives, and $209.58 million designated as gifts, as per RBI data.
As India continues to navigate through global uncertainties, the unwavering support of its diaspora through increased financial investments and remittances not only strengthens the nation’s economic resilience but also underscores its enduring ties with its expatriate communities worldwide.
Readers
These are extraordinary times. All of us have to rely on high-impact, trustworthy journalism. And this is especially true of the Indian Diaspora. Members of the Indian community overseas cannot be fed with inaccurate news.
Pravasi Samwad is a venture that has no shareholders. It is the result of an impassioned initiative of a handful of Indian journalists spread around the world. We have taken a small step forward with the pledge to provide news with accuracy, free from political and commercial influence. Our aim is to keep you, our readers, informed about developments at ‘home’ and across the world that affect you.
Please help us to keep our journalism independent and free.
In these difficult times, running a news website requires finances. While every contribution, big or small, will make a difference, we request our readers to put us in touch with advertisers worldwide. It will be a great help.
For more information: pravasisamwad00@gmail.com