A recent data released by the Reserve Bank of India (RBI) showed a 10% year-on-year rise of inflows into NRI deposit schemes. From $14.7 billion a year ago, it had risen to $16.2 billion in FY25, reportedly the highest inflow in 11 years.

The FCNR(B) deposits, which are dollar deposits where NRIs get at least 50-60 basis points, recorded $7.1 billion of the total inflow. The FCBR(B) and NRE(RA) also showed an inflow surge.

Joy P.V., executive vice-president and country head, deposits, wealth and bancassurance, at Federal Bank, said, “We had seen many NRI customers locking in deposits on the expectation that rates have peaked and it will start to come down because of the reduction in the RBI repo rate. Banks were also offering attractive rates on NRI deposits because there was intense competition to mobilise deposits in the previous financial year. Depreciation in the Indian rupee has also led to higher inflows in NRI deposits because they tend to make more returns in such cases.”

Inflows into rupee deposits such as NRE(RA) recorded $9.1 billion in FY25 when compared to $8.3 billion during the same period last year. – Photo by freepik – editor@nrifocus.com