Mumbai: Inflows into non-resident Indian (NRI) deposit schemes witnessed a sharp rise during the first four months of FY27, driven largely by strong growth in foreign currency deposits following a special policy measure introduced by the Reserve Bank of India (RBI).
According to RBI data, inflows into NRI deposit schemes jumped 678.2 per cent year-on-year to $36.24 billion during the April-July period of FY27, compared with $4.66 billion in the corresponding period of FY26.
The surge was primarily led by foreign currency non-resident (bank), or FCNR(B), deposits, following the RBI’s concessional swap facility introduced in June to attract foreign currency inflows.
The central bank’s move helped mobilise around $133 billion until August 31, significantly strengthening inflows into FCNR(B) accounts. During April-July FY27, FCNR(B) deposit inflows soared to $34.53 billion, compared with just $772 million in the same period a year earlier.
Reflecting the sharp increase, the outstanding amount in FCNR(B) accounts rose to $68.28 billion at the end of July 2026. FCNR(B) accounts allow NRIs to maintain fixed deposits in freely convertible foreign currencies for tenures ranging from one to five years, protecting depositors from exchange rate fluctuations during the deposit period.
Overall, total outstanding NRI deposits climbed to $200.89 billion as of July 2026, up from $167.86 billion in July 2025 and $168.51 billion in June 2026.
NRI deposit schemes comprise FCNR(B), Non-Resident External (NRE) deposits and Non-Resident Ordinary (NRO) deposits. While FCNR(B) deposits recorded a substantial rise, NRE deposit inflows moderated sharply.
NRE deposits registered net inflows of $207 million during April-July FY27, compared with $2.42 billion in the corresponding period last year. Outstanding NRE deposits stood at $98.02 billion in July 2026, lower than $102.03 billion a year earlier.
NRO deposits, meanwhile, continued to witness steady growth. Inflows into NRO accounts rose to $1.51 billion during April-July FY27 from $1.47 billion in the same period of the previous year.
The outstanding amount in NRO deposits stood at $34.59 billion in July 2026. NRO accounts are rupee-denominated bank accounts maintained by NRIs for managing income earned in India.
(IANS)
