NRI deposits rise 43% to $13.33 billion in nine months as inflows accelerate

MUMBAI: With this sharp rise, the total outstanding NRI deposits at the end of December 2024 soared to $161.8 billion, compared to $146.9 billion a year ago, underscoring the strong financial ties of the Indian diaspora with the country.

The Foreign Currency Non-Resident (FCNR-B) deposits led the inflows, doubling to $6.46 billion from $3.45 billion in the same period last year. The total outstanding amount in FCNR(B) accounts climbed to $32.19 billion by the end of December. These accounts allow NRIs to hold fixed deposits in freely convertible foreign currencies, safeguarding them from currency fluctuations.

Non-Resident External (NRE) deposits saw an inflow of $3.57 billion, up from $2.91 billion in the previous year. Total NRE deposits stood at $99.56 billion by December 2024.
Non-Resident Ordinary (NRO) deposits recorded inflows of $3.29 billion, compared to $2.97 billion a year ago. The total outstanding NRO deposits reached $30.04 billion.

The surge in NRI deposits comes after the RBI raised the interest rate ceiling on FCNR-B deposits in December, allowing banks to offer higher returns and attract more foreign currency.