Non-resident Indian (NRI) deposit inflows almost double compared to last year, hitting a new high of $11.9 billion.
Remittances into NRI deposit accounts have surged to a record $11.9 billion during April-October 2024, almost double the $6.1 billion recorded during the same period in 2023, according to the latest data from the Reserve Bank of India (RBI) , reported by gujaratsamachar.com
NRI deposits have grown significantly, reflecting the strong economic fundamentals and higher foreign currency inflows into India.
The total outstanding NRI deposits as of October 2024 stand at $162.7 billion, up from $143.5 billion in October 2023. The primary NRI deposit schemes include Foreign Currency Non-Resident (FCNR) deposits, Non-Resident External (NRE) deposits, and Non-Resident Ordinary (NRO) deposits. FCNR (B) deposits, in particular, saw the highest growth, attracting $6.1 billion, nearly three times the amount of $2.1 billion deposited during the same period last year, bringing the total in these accounts to $31.87 billion.
These accounts are especially popular among Indians working overseas, offering fixed deposits in foreign currency with higher interest rates and protection against currency fluctuations. The RBI recently raised the interest rate ceilings on FCNR (B) deposits as part of its efforts to attract more inflows, which help strengthen the country’s foreign exchange reserves. A robust forex reserve provides the RBI with more flexibility to stabilize the rupee in volatile market conditions.
NRE deposits also saw a significant increase, rising to $3.09 billion from $1.95 billion in the previous year, while NRO deposits grew to $2.66 billion from $2 billion in the same period last year.
India continues to lead the world in remittance inflows, with an estimated $129 billion expected in 2024, according to World Bank figures. The growth in remittances this year is estimated at 5.8%, up from 1.2% in 2023, largely driven by the recovery of job markets in high-income countries, particularly the United States, where foreign-born workers’ employment has rebounded strongly since the pandemic.
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