Inflows in NRI deposits almost doubled to $10.2 billion in H1FY25: RBI

The flow of money in non-resident Indian (NRI) deposit schemes almost doubled to $10.19 billion between April and September, 2024 (H1Fy25) from $ 5.41 billion put in by overseas Indians in these schemes during the same period in 2023, data released by the Reserve Bank of India (RBI) showed.

 

The total outstanding NRI deposits as of September, 2024 stood at $ 161.62 billion, according to the data released on Friday. The NRI deposit schemes include foreign currency non-resident (FCNR) deposits, non-resident external (NRE) deposits, and non-resident ordinary (NRO) deposits. The April-September period is also considered as the first half of the reporting financial year (H1).

 

During the April-September, 2024 period, maximum flows came into FCNR (B) deposits. According to RBI data, about $ 5.34 billion flowed into these accounts during this period, compared to $ 1.92 billion in the corresponding period a year ago.

 

The outstanding amount in FCNR (B) accounts stood at $ 31.08 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 $ 2.65 billion during H1Fy25, compared to an inflow of $ 1.61 billion in the corresponding period a year ago. The outstanding NRE deposits now stand at $ 100.92 billion in September, 2024.

 

NRO deposits also saw inflows worth $ 2.19 billion from April-September 2024, compared to $ 1.88 billion during the same period a year ago. The total outstanding amount in NRO deposits was $ 29.61 billion in September, 2024. An NRO account is a rupee-denominated bank account for NRIs.