NRI deposit inflows fall 29% to $1.33 billion in April-May 2026: RBI

The moderation was driven by weaker inflows into NRE and FCNR(B) accounts, though recent RBI measures have triggered a sharp rise in fresh FCNR(B) deposits

The flow of money from overseas Indians into non-resident Indian (NRI) deposit schemes dropped 29.25 per cent to $1.33 billion in the April-May period of FY27, from $1.88 billion in the corresponding period of FY26, according to Reserve Bank of India (RBI) data.

 

The total outstanding NRI deposits stood at $165.96 billion as of the end of May 2026. Outstanding NRI deposits were $166.72 billion in May 2025 and $165.59 billion in April 2026.

 

NRI deposit schemes include foreign currency non-resident (bank) (FCNR(B)) deposits, non-resident external (NRE) deposits and non-resident ordinary (NRO) deposits.

 

During the April-May period of FY27, inflows into FCNR(B) deposits dropped to $282 million, compared with $442 million in the corresponding period a year ago.

   

In May, the outstanding amount in FCNR(B) accounts rose to $34.04 billion. An FCNR(B) account allows customers to 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 protects funds against currency fluctuations during the deposit tenure.

 

NRE deposits recorded inflows of $597 million during the April-May period of FY27, compared with $1.01 billion in the corresponding period a year ago. Outstanding NRE deposits stood at $98.39 billion in May 2026, against $101.86 billion in May 2025.

 

NRO deposits recorded inflows of $451 million in April-May 2026, compared with $434 million in the corresponding period a year ago. The total outstanding amount in NRO deposits stood at $33.53 billion in May 2026, compared with $31.61 billion a year earlier. An NRO account is a rupee-denominated bank account for NRIs.

 

In its bulletin, the RBI said the moderation in NRI deposit inflows compared with last year was driven by a slowdown in non-resident external rupee account (NR(E)RA) and FCNR(B) accounts.

 

"With the recent policy measures on non-resident deposits (NRDs), overseas foreign currency borrowings (OFCBs) and external commercial borrowing (ECB) inflows by the RBI, including a concessional swap facility for fresh FCNR(B) deposits on June 5, 2026, there was a surge in FCNR(B) deposit inflows amounting to $17.4 billion from June 8 to July 17, 2026."

 

During the same period, OFCBs and ECBs recorded inflows of $1.97 billion and $1.34 billion, respectively.