NRI deposits witness $7.82 billion inflows in April-August 2024: RBI data

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The money put in by Overseas Indians in non-resident Indian (NRI) deposit schemes doubled to $7.82 billion between April and August, 2024 from $3.74 billion put in these schemes during the same period in 2023, data released by the Reserve Bank of India (RBI) showed.

The total outstanding NRI deposits as of August, 2024 stood at $158.94 billion, revealed the data released on Friday. The NRI deposit schemes include foreign currency non-resident (FCNR) deposits, non-resident external (NRE) deposits, and non-resident ordinary (NRO) deposits.

During the April–August, 2024 period, maximum flows came into FCNR (B) deposits. According to RBI data, about $3.47 billion flowed into these accounts during this period, compared to $1.55 billion in the corresponding period a year ago.

The outstanding amount in FCNR (B) accounts stood at $29.2 billion. An FCNR (B) account lets customers maintain a fixed deposit in India in freely convertible foreign currencies for a tenure ranging from one to five years. Since the account is maintained in foreign currency, it secures funds against currency fluctuations during the tenure of the deposit.

Meanwhile, NRE deposits witnessed an inflow of $2.51 billion during this period, compared to an inflow of $868 million in the corresponding period a year ago. The outstanding NRE deposits now stand at $100.54 billion in August, 2024.

NRO deposits also saw inflows worth $1.84 billion from April–August, 2024, compared to $1.32 billion during the same period a year ago. The total outstanding amount in NRO deposits was $29.19 billion in August, 2024. An NRO account is a rupee-denominated bank account for NRIs.