This surge in NRI deposits reflects the confidence of overseas Indians in India’s banking sector and offers a vital source of stable, foreign inflows for the country
Overseas Indians deposited a total of $5.82 billion into non-resident Indian (NRI) deposit schemes between April and July 2024, marking a substantial 93.35% increase compared to the same period last year. Data released by the Reserve Bank of India (RBI) on September 20 highlighted this sharp rise in NRI deposits, which had totaled significantly less during the previous fiscal year.
As of July 2024, the total outstanding NRI deposits reached $157.15 billion. These deposit schemes include Foreign Currency Non-Resident (FCNR), Non-Resident External (NRE), and Non-Resident Ordinary (NRO) accounts, each offering unique benefits for overseas Indians.
Similarly, NRO deposits saw an inflow of $1.2 billion in the same period, up from $1 billion a year earlier. The outstanding balance in NRO deposits reached $28.6 billion by July 2024. NRO accounts, which are rupee-denominated, provide NRIs with the facility to manage their income earned in India
The majority of inflows during this period came into FCNR (B) deposits, which saw an impressive $2.83 billion inflow compared to $1.44 billion in the same period in 2023. The outstanding balance in FCNR (B) accounts now stands at $28.57 billion. These accounts allow NRIs to hold fixed deposits in freely convertible foreign currencies for a period of one to five years, protecting their funds from currency fluctuations.
NRE deposits also experienced a strong inflow, receiving $1.78 billion during April–July 2024, a significant rise from $568 million during the same period last year. The total outstanding NRE deposits now stand at $99.98 billion. NRE accounts enable NRIs to park their foreign earnings in India without facing exchange rate risks.
***********************************************************
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