Overseas Indians deposited about $5.82 billion in non-resident Indian (NRI) deposit schemes in April–July 2024 (FY25), up 93.35 per cent over the amount deposited in these schemes in the same period last year, data released by the Reserve Bank of India (RBI) on Friday showed.
The total outstanding NRI deposits as of July 2024 stood at $157.15 billion. The NRI deposit schemes include foreign currency non-resident (FCNR) deposits, non-resident external (NRE) deposits, and non-resident ordinary (NRO) deposits.
During the April–July 2024 period, maximum flows came into FCNR (B) deposits. According to RBI data, about $2.83 billion flowed into these accounts during this period, compared to $1.44 billion in the corresponding period a year ago. The outstanding amount in FCNR (B) accounts stood at $28.57 billion. An FCNR (B) account lets customers maintain a fixed deposit in India in freely convertible foreign currencies for a tenure ranging from one to five years. Since the account is maintained in foreign currency, it secures funds against currency fluctuations during the tenure of the deposit.
Meanwhile, NRE deposits witnessed an inflow of $1.78 billion during this period, compared to an inflow of $568 million in the corresponding period a year ago. The outstanding NRE deposits now stand at $99.98 billion.
Similarly, NRO deposits also saw inflows worth $1.2 billion in April–July FY25, compared to $1 billion during the same period a year ago. The total outstanding amount in NRO deposits was $28.6 billion in July 2024. An NRO account is a rupee-denominated bank account for NRIs.
First Published: Sep 20 2024 | 8:36 PM IS