Lower FCNR (B) deposits drag overall inflows despite growth in NRE accounts
The flow of funds from overseas Indians into non-resident Indian (NRI) deposit schemes fell to $4.7 billion during April–July 2025, compared to $5.8 billion in the same period last year, according to the latest data from the Reserve Bank of India (RBI) , reported business-standard.com.
The slowdown was largely attributed to a sharp decline in Foreign Currency Non-Resident (Bank) [FCNR (B)] deposit inflows, which offset gains in other deposit categories.
As per the RBI’s data, total outstanding NRI deposits stood at $167.86 billion at the end of July 2025, marginally lower than $168.32 billion a year earlier. \
NRI deposit schemes comprise Foreign Currency Non-Resident (FCNR), Non-Resident External (NRE), and Non-Resident Ordinary (NRO) deposits
In April–July 2025, FCNR (B) accounts attracted just $772 million, down sharply from $2.8 billion in the corresponding period of 2024. The total outstanding in FCNR (B) accounts was $33.58 billion as of July 2025.
NRE deposits see positive growth
In contrast, NRE deposits registered an inflow of $2.41 billion between April and July 2025, higher than the $1.78 billion seen in the same period last year. Outstanding NRE deposits reached $102.02 billion at the end of July 2025, reflecting steady growth in rupee-denominated deposits.
Analysts suggest the dip in FCNR (B) inflows could be linked to currency fluctuations and narrowing interest rate differentials between Indian and global markets, while continued NRE growth highlights resilient remittance sentiment among the Indian diaspora.
