NEW DELHI (Diya TV) — Overseas Indians deposited nearly $12 billion into non-resident Indian (NRI) deposit schemes between April and October 2024, the Reserve Bank of India said. This figure marked a significant jump from the $6.11 billion deposited during the same period last year, reflecting robust growth in NRI investments.
The total outstanding NRI deposits reached $162.69 billion as of October 2024, up from $143.48 billion a year earlier. The RBI, in its data released on Dec. 24, revealed that October alone saw over $1 billion in fresh deposits from non-resident Indians.
NRI deposits are categorized into three major categories: Foreign Currency Non-Resident (FCNR), Non-Resident External (NRE), and Non-Resident Ordinary (NRO) accounts. All these categories have seen a massive growth during the fiscal year 2024-25.
The maximum inflows were seen in FCNR accounts, which enable NRIs to hold deposits in foreign currencies. These accounts witnessed $6.1 billion inflows from April to October 2024, up sharply from the $2.06 billion in the same period last year. The outstanding FCNR accounts stood at $31.87 billion as of October. In a bid to stabilize the rupee, which had depreciated against the US dollar, the RBI raised interest rate ceilings on FCNR accounts and encouraged more inflows.
NRE deposits, also rupee-denominated but offering high returns to NRIs, were another product that rose sharply. Those accounts attracted $3.09 billion in the April-October period compared with $1.95 billion the previous year.
NRO deposits, catering to the income earned within India, also rose. Inflows into NROs stood at $2.66 billion compared with $2 billion in the same period last year.
The continued upward trend in NRI deposits is considered a positive pointer of non-resident Indian confidence in India’s banking system and the country’s overall economic stability.
