FCNR-B deposit pool shrinks sharply in Q3 on redemption

The deposits stood at $20.85 bn in December 2016 from $44.11 bn at the end of September 2016

The large-scale redemption of Foreign Currency Non-Resident Banks-deposits (FCNR-B) in the quarter ended December 2016 sharply brought down the tally of total deposits by non-resident Indians (NRIs) to $109.7 billion from $130.02 billion in the previous quarter. 

The FCNR-B deposits stood at $20.85 billion in December 2016, against $44.11 billion at the end of September 2016, according to Reserve Bank of India data.

The outflow also impacted the business — deposits plus advances — of banks in the third quarter of 2016-17. The country’s largest lender, State Bank of India, reported a 64.2 per cent drop in such deposits in 12