Handful Districts: Five districts in Gujarat, including Ahmedabad, Kutch, Vadodara, Anand, and Rajkot, dominate approximately 70% of the NRI deposits in the state, as per the latest report from the State Level Bankers’ Committee (SLBC).
During the December quarter of FY 2024, these districts collectively amassed Rs 61,284 crore out of the total NRI deposits in the state,Handful Districts amounting to Rs 86,635 crore.
Handful Districts in…
Apart from these major cities, districts like Kheda, Anand, Navsari, Kutch, and Porbandar also significantly contribute to the state’s NRI deposits due to the substantial emigration from these regions. Banking sector sources attribute the rise in deposits to the competitive interest rates offered by banks.
An official from the SLBC explained that districts such as Anand, Porbandar, Kheda, Navsari, and Kutch serve as NRI hubs, resulting in an increase in their contribution to the state’s NRI deposits.
Meanwhile, major cities like Ahmedabad, Rajkot, and Vadodara naturally have a higher banking presence and NRI account numbers, which further bolster their deposit figures.
In the December 2023 quarter, NRI deposits saw a slight decline of 3.5% to Rs 86,635.3 crore compared to Rs 89,315 crore in the December 2022 quarter. This decrease was attributed to routine deposits and withdrawals.
The decision to send funds back to India by Indians residing abroad is influenced by the interest rates prevailing in their respective countries compared to those in India. Currently, interest rates in the US, ranging from 5-6%, are relatively similar to or slightly lower than those in India.
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