NRI deposits jump 43% in April-December 2024, show RBI data

The inflow of funds from Indians working abroad into non-resident Indian (NRI) bank accounts rose sharply by 42.8% to $13.33 billion between April and December 2024, compared to $9.33 billion in the same period last year, according to the latest data from the Reserve Bank of India (RBI).

The total outstanding NRI deposits stood at $161.8 billion at the end of December 2024, up from $146.9 billion in December 2023. NRI deposit schemes comprise foreign currency non-resident (FCNR) deposits, non-resident external (NRE) deposits, and non-resident ordinary (NRO) deposits, which are held in rupees.

The highest inflows were recorded in FCNR(B) deposits, which attracted $6.46 billion during the April-December 2024 period, nearly doubling from $3.45 billion in the same period last year. The outstanding amount in FCNR(B) accounts increased to $32.19 billion by the end of December. These accounts allow NRIs to maintain fixed deposits in freely convertible foreign currencies for one to five years, protecting their funds from currency fluctuations.

NRE deposits saw inflows of $3.57 billion, up from $2.91 billion a year earlier. Outstanding NRE deposits totaled $99.56 billion in December 2024. Meanwhile, NRO deposits recorded inflows of $3.29 billion, compared to $2.97 billion in the previous year. The total outstanding amount in NRO deposits reached $30.04 billion in December.

In early December, the RBI raised the interest rate ceiling on FCNR(B) deposits to enable banks to offer higher returns, aiming to attract more foreign currency inflows and support the rupee against the US dollar.