NRI Deposits Surge Crosses $6B Mark

NRI Investments Reaches 6B USD

NRI Deposits: Increased interest rates and a stable rupee have attracted a higher influx of funds from non-resident Indians into various deposit schemes offered by domestic banks.

Recent data from the Reserve Bank of India reveals that fresh inflows into different non-resident deposit schemes have doubled to $6.1 billion in April–October 2023, compared to $3.05 billion in the corresponding period from previous year.

NRI Deposits Viral

Notably, the highest deposits from NRIs during this period were directed towards non-resident ordinary accounts, totaling around $2 billion. In comparison, the flows into NRO deposits stood at $2.19 billion in the same period the previous year.

Madan Sabnavis, Chief Economist at Bank of Baroda, attributes the upswing in NRI deposits to the attractive interest rates offered by banks. Additionally, the stability of the rupee against other currencies has further encouraged higher accretion.

Distinguishing between the accounts, the NRE account facilitates the transfer of foreign earnings to India for non-resident Indians, while the NRO account is designed to manage domestically earned income.

Both accounts maintain deposits in rupees. On the other hand, FCNR (B) represents a fixed deposit held in foreign currency, offering NRIs the option to retain their funds in foreign currency without exposure to currency depreciation.

Principal and interest earned under the FCNR (B) scheme are fully repatriable, and the deposits can be maintained in various currencies, including the dollar, pounds sterling, and the euro.

Also Read : Robert Vadra Linked to ED Chargesheet Against NRI

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