Daijiworld Media Network- Mumbai

Mumbai, Feb 20: Non-Resident Indian (NRI) bank accounts witnessed a sharp increase in fund inflows, rising by 42.8% to $13.33 billion between April and December 2024, compared to $9.33 billion during the same period in 2023, as per the latest data released by the Reserve Bank of India (RBI).

The total outstanding NRI deposits stood at $161.8 billion at the end of December 2024, significantly up from $146.9 billion in December 2023.

NRI deposit schemes include Foreign Currency Non-Resident [FCNR (B)] deposits, Non-Resident External (NRE) deposits, and Non-Resident Ordinary (NRO) deposits, which are maintained in Indian rupees.

Among these, FCNR (B) deposits attracted the highest inflows, reaching $6.46 billion during April-December 2024—almost double the $3.45 billion recorded in the same period last year. The total outstanding amount in FCNR (B) deposits increased to $32.19 billion by the end of December. These accounts allow NRIs to maintain fixed deposits in freely convertible foreign currencies, shielding them from exchange rate fluctuations.

NRE deposits saw inflows of $3.57 billion in this period, up from $2.91 billion a year ago, with outstanding deposits reaching $99.56 billion in December 2024. Meanwhile, NRO deposits recorded inflows of $3.29 billion, compared to $2.97 billion last year, bringing the total outstanding NRO deposits to $30.04 billion. NRO accounts are rupee-denominated accounts meant for NRIs.

To attract more foreign currency deposits and support the Indian rupee against the US dollar, the RBI had, in early December, increased the interest rate ceiling on FCNR (B) deposits, allowing banks to offer higher returns on these deposits.