This surge aligns with broader economic trends, underscoring India’s growing appeal as a destination for global financial investments
Non-resident Indian (NRI) deposit inflows nearly doubled in the first half of the financial year 2024-25 (H1 FY25), reaching $10.19 billion compared to $5.41 billion during the same period in 2023, reported business-standard.com based on the Reserve Bank of India’s (RBI) latest data.
As of September 2024, total outstanding NRI deposits stood at $161.62 billion. These deposits comprise three key schemes: foreign currency non-resident (FCNR) deposits, non-resident external (NRE) deposits, and non-resident ordinary (NRO) deposits.
-
The near-doubling of NRI deposit inflows highlights strong confidence among overseas Indians in India’s banking system and economic stability
-
The rise in FCNR (B) deposits suggests NRIs are leveraging opportunities to secure their savings against currency risks while taking advantage of favorable interest rates
FCNR (B) Deposits Lead the Surge
FCNR (B) deposits attracted the highest inflows during H1 FY25, with $5.34 billion compared to $1.92 billion in the same period last year. The outstanding balance in these accounts rose to $31.08 billion. Designed to protect depositors from currency fluctuations, FCNR (B) accounts allow NRIs to maintain fixed deposits in freely convertible foreign currencies for tenures ranging from one to five years.
Growth in NRE and NRO Deposits
NRE deposits, primarily used for savings and investments in Indian rupees, saw an inflow of $2.65 billion during April-September 2024, up from $1.61 billion a year earlier. The total outstanding NRE deposits climbed to $100.92 billion by September 2024.
Similarly, NRO deposits, which facilitate the management of earnings in India such as rent or dividends, recorded inflows of $2.19 billion, up from $1.88 billion in the corresponding period of 2023. The outstanding NRO deposits amounted to $29.61 billion in September 2024.
Robust Growth Reflects Economic Confidence
***********************************************************
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