The flow of money into Non-Resident Indians (NRIs) deposits doubled to touch $6.11 billion in April-October 2023, compared with $3.05 billion in April-October 2022. Flows into Foreign Currency Non-Resident (FCNR) moved back to positive territory with $2.06 billion in April-October 2023 as against an outflow of $814 million in the same period of 2022, according to Reserve Bank of India (RBI) data.
The outstanding NRI deposits were almost flat at $143.81 billion at the end of October 2023, up from $143.07 billion in September 2023. Outstanding NRI deposits showed a marked rise from $132.66 billion a year ago.
A closer analysis showed that outstanding Foreign Currency Non-Resident (FCNR) deposits stood at $21.42 billion in October 2023. It was a minimal sequential rise from $21.28 billion in September 2023. They were substantially higher compared to the $16.10 billion recorded a year ago.
Non-Resident External (NRE) deposits stood at $96.56 billion in October 2023, sequentially up from $96.45 billion in September and $94.75 billion in September 2023. Eligible NRIs can deposit money in NRE deposits in any denomination and withdraw it in rupees. On the other hand, Non-Resident Ordinary (NRO) are accounts where the money is kept in rupees and cannot be freely converted into foreign currency.
NRO deposits touched $25.48 billion in October 2023, from $25.32 billion in September 2023 and $21.79 billion a year ago.
In July 2022, the RBI implemented measures to enhance inflows into NRI accounts. These included easing caps on interest rates for both FCNR (B) and NRE deposits, as well as exempting the maintenance of cash reserve ratio and statutory liquidity ratio on incremental deposits until November 4, 2022.
First Published: Dec 25 2023 | 2:00 PM IST