Inflows of NRI deposits doubled from the previous year to $6.1 billion between April and October of 2023

Inflows of NRI deposits doubled from the previous year to $6.1 billion between April and October of 2023

Inflows of NRI deposits doubled from the previous year to $6.1 billion between April and October of 2023

The primary cause of the increase in NRI deposits was an increase in deposits into foreign currency non-resident FCNR (B) accounts.

The Reserve Bank of India (RBI) has released statistics showing that investments made under different non-resident deposit programs more than quadrupled from $3.05 billion to $6.1 billion in April–October 2023.

The primary cause of the increase in NRI deposits was an increase in deposits into foreign currency non-resident FCNR (B) accounts.

Deposits into FCNR (B) rose to $2.06 billion between April and October of 2023, compared to $814 million in withdrawals over the same period the previous year. At the same period last year, the amount of money going into non-resident external rupee accounts, or NR(E) RAs, increased to $1.95 billion from $1.67 billion.

During that time, non-resident ordinary (NRO) accounts received the biggest NRI deposits, amounting to around $2 billion. In comparison to the same time previous year, inflows into NRO deposits were $2.19 billion.

While non-resident Indians use their NRE accounts to transfer international income to India, NRO accounts are meant to manage local revenue. Rupees are used to manage the balances in both accounts. FCNR (B) refers to fixed deposits held in foreign currency. Since it provides NRIs with the option to retain their money in foreign currency, there is no chance of currency depreciation. The principle sum and interest are entirely repatriable under this arrangement. Deposits for FCNR(B) may be held in dollars, euros, or pounds sterling, among other currencies.

Domestic banks are already offering interest rates of 6.5 to 7.5 percent on different NRE fixed deposits of less than Rs 2 crore. The biggest lender in the nation, State Bank of India (SBI), is providing 400-day NRE fixed deposits with an interest rate of 7.1% for NRE deposits under Rs 2 crore.