Friday, November 22, 2024

Strong FCNR inflows fuel NRI deposits surge to $5.82 billion in April–July 2024

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

PRAVASISAMWAD.COM

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.

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Roma Ghosh
Roma Ghosh
Roma Ghosh has recently retired as Associate Professor for Media Studies from an international university. She was with the Times of India as a correspondent for many years. Her passion is cooking and she has been doing recipes and photo shoots for Women's Era for the last 15-odd years.

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