NRI deposits in India doubles

Notably, non-resident ordinary (NRO) accounts have seen the highest deposits, with a total inflow of around $2 billion

PRAVASISAMWAD.COM

Non Resident Indians (NRIs) have demonstrated their growing confidence in the Indian economy by doubling their deposits in the country to $6.1 billion during the April-October 2023 period. This surge, primarily driven by higher interest rates and a stable rupee, is seen as a positive indicator for the Indian economy, potentially leading to a stronger currency, enhanced liquidity in the banking system, and increased investment in Indian markets, reported bnnbreaking.com.

The remarkable increase in NRI deposits is largely attributed to a substantial rise in inflows into Foreign Currency Non-Repatriable (Bank) accounts, or FCNR(B), and non-resident external rupee accounts. Notably, non-resident ordinary (NRO) accounts have seen the highest deposits, with a total inflow of around $2 billion.

As NRIs continue to express their confidence in the Indian economy, the future of NRI deposits and their impact on the Indian economic landscape remains to be seen

Domestic banks, offering attractive interest rates ranging from 6.5% to 7.5% on various non-resident external (NRE) term deposits below Rs 2 crore, have lured NRIs to park their funds in India. The stability of the rupee and post-Covid influences, such as Indians returning to work overseas, have also contributed to the surge in NRI deposits. For instance, ICICI Bank offers high fixed deposit interest rates for NRIs, with rates reaching up to 7.65% per annum for senior citizens above 60 years of age and up to 7.10% per annum for citizens below 60 years of age.

The increased NRI deposits in India, while promising, are not without implications. More foreign exchange in India could mean a stronger rupee and more liquidity in the Indian banking system. However, without additional context, such as economic indicators, policy changes, or expert analysis, the underlying factors and ramifications of this increase in NRI deposits remain speculative. As NRIs continue to express their confidence in the Indian economy, the future of NRI deposits and their impact on the Indian economic landscape remains to be seen.

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