The Indian diaspora is flocking towards local banks as their deposits surged to a decadal high, promoted by attractive rates amid depreciation in the rupee. Inflows into NRI deposit schemes rose 10% year-on-year to $16.2 billion in FY25 from inflows of $14.7 a year ago, the data released in the Reserve Bank of India’s latest monthly bulletin showed. This is the highest inflow in 11 years.
Both dollar (FCBR(B)) and rupee deposits (NRE(RA)) surged reflecting higher returns in the Indian markets. Of the total inflows of $7.1 billion flowed to FCNR (B) (foreign currency non-resident (banks) deposits which are essentially dollar deposits and the foreign exchange risk is borne by the bank which accepts the deposit. This was 11% higher compared to the previous fiscal year.