NRI Bank Accounts See 43% Surge in Funds to $13.33 Billion in April-Dec
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Synopsis
Between April and December 2024, the flow of funds into non-resident Indian (NRI) bank accounts increased by 42.8% to $13.33 billion, according to Reserve Bank of India data. Outstanding NRI deposits reached $161.8 billion, highlighting a significant rise compared to the previous year.
Key Takeaways
- Inflow of funds into NRI accounts increased by 42.8%.
- Total NRI deposits reached $161.8 billion by December 2024.
- FCNR(B) accounts saw the highest inflow of $6.46 billion.
- NRE and NRO deposits also reported significant increases.
- The RBI hiked interest rates on FCNR(B) deposits.
Mumbai, Feb 20 (NationPress) The inflow of funds from Indians residing abroad into non-resident Indian (NRI) bank accounts has surged by 42.8 percent to $13.33 billion from April to December 2024, in comparison to $9.33 billion during the same timeframe in 2023, as per the latest statistics from the Reserve Bank of India (RBI).
By the end of December 2024, the total outstanding NRI deposits rose to $161.8 billion, up from $146.9 billion in December 2023.
NRI deposit options encompass foreign currency non-resident (FCNR) deposits, as well as non-resident external (NRE) and non-resident ordinary (NRO) deposits, which are maintained in rupees.
The largest influx of $6.46 billion was recorded in FCNR (B) deposits during the April-December 2024 timeframe, nearly doubling the $3.45 billion that was deposited in these accounts in the same period last year. The total in FCNR(B) accounts climbed to $32.19 billion by the end of December.
An FCNR(B) account enables customers to hold a fixed deposit in India in freely convertible foreign currencies for terms ranging from one to five years. Since these accounts are held in foreign currency, they protect the funds against currency fluctuations throughout the deposit period.
NRE deposits saw an inflow of $3.57 billion during this timeframe, up from $2.91 billion in the same period the previous year. As of December 2024, total outstanding NRE deposits were $99.56 billion.
NRO deposits experienced inflows of $3.29 billion from April to December 2024, an increase from $2.97 billion during the same period a year prior. The total outstanding amount in NRO deposits was $30.04 billion as of December 2024. An NRO account is a rupee-denominated bank account for NRIs.
In early December, the RBI raised the interest rate ceiling on Foreign Currency Non-Resident (FCNR-B) deposits, allowing banks to provide higher returns on these deposits. This measure aimed to draw more foreign currency into the country and bolster the rupee against the US dollar.
