 "Flows into NRI deposits double Y-o-Y to $6.11 billion in April-October 23")
The flow of money into Non-Resident Indians’ (NRIs’) deposits doubled to $6.11 billion in April-October 2023 from $3.05 billion in the same period a year ago. Inflows into Foreign Currency Non-Resident (FCNR) accounts increased to $2.06 billion in April-October 2023 as against an outflow of $814 billion in the same period of 2022, according to Reserve Bank of India (RBI) data.
The outstanding NRI deposits were almost flat at $143.81 billion at the end of October 2023, up from $143.07 billion in September 2023. They showed a marked rise from $132.66 billion a year ago.
A closer analysis showed that outstanding FCNR deposits stood at $21.42 billion in October 2023. It was a minimal sequential rise from $21.28 billion in September 2023. They were substantially higher than the $16.10 billion recorded a year ago.
Non-Resident External (NRE) deposits stood at $96.56 billion in October 2023, sequentially up from $96.45 billion in September and $94.75 billion in September 2023.
Eligible NRIs can deposit money in NRE deposits in any denomination and withdraw it in rupees. On the other hand, in Non-Resident Ordinary (NRO) accounts money is kept in rupees and cannot be freely converted into foreign currency.
NRO deposits touched $25.48 billion in October 2023 from $25.32 billion in September 2023 and $21.79 billion a year ago. In July 2022, the RBI implemented measures to enhance inflows into NRI accounts. These included easing caps on interest rates for both FCNR (B) and NRE deposits, as well as exempting the maintenance of cash reserve ratio and statutory liquidity ratio on incremental deposits until November 4, 2022.