Inflows into NRI deposits more than double in April 2022-January 2023

The bank accounts of non-resident Indians (NRIs) received $5.95 billion during April 2022-January 2023, more than doubling from the $2.7 billion in the equivalent period in FY22.

Also, breaking the streak of decline in outstanding amounts, NRI deposits rose to $136.81 billion at the end of January 2023 from $134.48 billion in December 2022, according to the Reserve Bank of India data.

In March they were $139.02 billion.

They were stable in December 2022 compared to $134.6 billion in November 2022.

Bankers have said inflows have increased owing to facilities like easing limits on interest rates. However, there was an outflow for purchases during the festival season.

In July, the RBI took steps to enhance inflows into NRI accounts. These were easing caps on interest rates on Foreign Currency Non-Resident (Bank), or FCNR (B), and Non-Resident External (NRE) deposits, and exemption from maintaining the cash reserve ratio and statutory liquidity ratio on incremental deposits until November 4.

A further analysis indicated FCNR (B) deposits were at $18.19 billion in January 2023, up sequentially from $17.58 billion in December 2022. They were also slightly high compared to $18.08 billion a year ago.

FCNR (B) deposits were at $16.91 billion in March.