The Reserve Bank of India’s March 2025 bulletin shows India receiving $118.7 billion in remittances in 2023-24. This figure is more than double when compared to the $55.6 billion received in 2010-11. The news is that Kerala alone accounts for $23.39 billion.

Deposits made by NRIs in Kerala banks are expected to cross Rs.3 trillion in January to March this year, the data for which is awaited. According to data available from December 2024, NRI deposits recorded in Kerala stood at Rs.2,86,063 crore, which is Rs. 24,000 crore more from the previous year, accounting for a 9.4% steep increase year-on-year.

Looking back, Kerala banks touched the Rs.1 trillion mark in non-resident deposits before 2014. The doubling up happened around March 2020, when a major part of remittances into these foreign currency accounts were because of the attractive interest rates. Currency exchange benefits were another reason for NRIs making these huge deposits. The trend continues into 2025.

However, despite the Indian currency depreciating from Rs.75.71 per US dollar to Rs.85.45 over the past five years being a worrisome factor, the value added to every dollar is an advantage to NRIs making the remittances. – Illustration by Freepik – editor@nrifocus.com