Flows into NRIs deposits in India top $8-billion mark in 2022-23

The bank accounts of non-resident Indians (NRIs) held in the country received $ 7.99 billion during April 2022-March 2023 (FY23), more than twice the $3.23 billion in FY22.

The outstanding amounts in NRI deposits rose sequentially from $ 135.54 billion in February 2023 to $137.88 billion at the end of March 2023, according to the Reserve Bank of India data.

However, the outstanding NRI deposits fell from $139.02 billion at the end of March 2022 to $137.88 in March 2023.

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 $19.34 billion this March, up from $18.4 billion in February. They were also higher compared to $16.91 billion in March 2022.

NRE deposits stood at $95.44 billion this March, down sequentially from $94.13 billion in February and $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 were almost flat at $23.09 billion in March 2023 from $23 billion in February. But they were up from $21.3 billion a year ago.