A recent data by the Reserve Bank of India comes as a shocker to NRIs and investors around the world. Fresh deposits into India by NRIs have signalled a sharp decline in FY26.

Declining interest rates and challenging economic conditions are said to be the cause for the trend.

The RBI data also shows that additional NRI deposits garnered in April-September 2025 were just $6.1 billion when compared to $10.2 billion deposits in the same period last fiscal.

The 40% fall was evident in Foreign Currency Non-Resident (Bank) [FCNR (B)] deposits, where NRIs had reportedly taken out money in the two-month period from July to August 2025.

NRI deposits include foreign currency deposits called FCNR (B) and deposits held in Indian rupee, such as non-resident external (NRE) and non-resident ordinary (NRO) accounts.

However, NRE and NRO deposit flows remained steady in H1FY26.

It is to be noted that a large proportion of NRI deposits that come into India are from the US.

Analysts have blamed the US for its policy uncertainties. On the other hand, India’s reduced interest rates have also contributed to this unwelcome scenario. – editor@nrifocus.com