Flows into NRI deposits jump 2.5x in April-February to $6.4 billion

Outstanding deposits decline in Feb 2023 over Jan 2023

The bank accounts of non-resident Indians (NRIs) held in the country received $6.4 billion during April 2022-February 2023, more than twice the $2.35 billion during the same period in FY22.
 

However, the outstanding amounts in NRI deposits fell to $135.54 billion at the end of February 2023 from $136.82 billion in January 2023, according to the Reserve Bank of India data.

In January 2023, breaking the streak of declines, outstanding NRI deposits had risen to $136.82 billion from $134.48 billion in December 2022. In March they were $139.02 billion.

Bankers said inflows rose due to facilities like easing limits on interest rates. 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 $18.4 billion this February, marginally up from $18.2 billion in January. They were also slightly higher compared to $17.29 billion a year ago. FCNR (B) deposits were at $16.91 billion in March.

NRE deposits were $94.13 billion this February, down sequentially from $95.49 billion in January and $101.11 billion a year ago. NRE deposits were $100.8 billion in March 2022. Eligible NRIs can put money in NRE deposits in any foreign denomination and withdraw it in rupees.

Non-Resident Ordinary (NRO) are accounts where the money is kept in rupees and cannot be freely converted into foreign currency. NRO deposits slipped to $23 billion in February 2023 from $23.12 billion in January. But they were up from $21.16 billion a year ago.