Foreign currency deposits lose sheen due to stable rupee

The flow of total NRI deposits during FY21 was $7.3 bn as compared to $8.6 bn in FY20. This was the lowest flow of NRI deposits since FY17

Flow of deposits from non-resident Indians hit a four-year low in the financial year 2020-21 mainly due to contraction in foreign currency deposits, latest data released by the Reserve Bank of India (RBI) showed.

The flow of total NRI deposits during the financial year 2020-21 was $7.3 billion as compared to $8.6 billion in FY20. This was the lowest flow of NRI deposits since 2016-17 when these deposits contracted by $12.3 billion.

There are three kinds of deposit accounts of Indian banks where NRIs or PIOs (persons of Indian origin) can park their funds — NRE (non-resident external-rupee account), NRO