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Despite the slowdown in fresh inflows, the overall picture remains stable
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By the end of November 2025, total NRI deposits with Indian banks stood at around USD 168 billion, slightly higher than last year
Money kept by Non-Resident Indians (NRIs) in Indian banks has seen a sharp decline this year, mainly due to reduced interest in foreign currency deposits. According to the latest data released by the Reserve Bank of India (RBI), NRI deposit inflows dropped by 26.6 per cent to USD 9.2 billion during the April–November 2025 period. In comparison, inflows during the same months last year stood much higher at USD 12.55 billion.
The biggest reason behind this fall is the sharp slowdown in Foreign Currency Non-Resident (FCNR) deposits. These deposits are held in foreign currencies and are usually preferred by NRIs as they offer protection against exchange rate fluctuations. However, lower returns and changing global interest rate conditions appear to have reduced their appeal, leading many NRIs to look for other investment options instead of parking funds in FCNR fixed deposits.
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On a slightly positive note, rupee-based NRI accounts have shown better performance
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Non-Resident External (NRE) deposits recorded modest growth during the period, indicating that a section of NRIs continues to place trust in India’s banking system and economy
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These accounts allow NRIs to hold savings in Indian rupees and freely repatriate both principal and interest
Non-Resident Ordinary (NRO) accounts also witnessed a small increase. This growth is largely attributed to income earned within India, such as rent, dividends, pensions, and other local earnings, which are typically routed through NRO accounts.
Despite the slowdown in fresh inflows, the overall picture remains stable. By the end of November 2025, total NRI deposits with Indian banks stood at around USD 168 billion, slightly higher than last year. This suggests that while new investments have slowed, existing deposits continue to remain steady, reflecting long-term confidence among NRIs in India’s financial system.
