Daijiworld Media Network - Mumbai
Mumbai, Sep 27: Inflows into non-resident Indian (NRI) deposit schemes surged sharply during the first four months of FY27, driven mainly by a steep rise 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 April-July FY27, compared with $4.66 billion in the corresponding period of FY26.
The increase was led largely 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 boosting inflows into FCNR(B) accounts. During April-July FY27, FCNR(B) deposit inflows surged to $34.53 billion from just $772 million in the same period a year earlier.
Reflecting the 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 periods ranging from one to five years, thereby protecting depositors from exchange rate fluctuations during the deposit tenure.
Overall, outstanding NRI deposits rose to $200.89 billion as of July 2026, compared with $167.86 billion in July 2025 and $168.51 billion in June 2026.
NRI deposit schemes comprise FCNR(B), Non-Resident External (NRE) and Non-Resident Ordinary (NRO) deposits.
While FCNR(B) deposits recorded a substantial increase, inflows into NRE deposits moderated sharply. NRE deposits saw net inflows of $207 million during April-July FY27, down from $2.42 billion in the corresponding period of the previous year.
Outstanding NRE deposits stood at $98.02 billion in July 2026, compared with $102.03 billion a year earlier.
NRO deposits, meanwhile, continued to register steady growth. Inflows into NRO accounts increased to $1.51 billion during April-July FY27 from $1.47 billion in the same period a year earlier.
The outstanding amount in NRO deposits stood at $34.59 billion in July 2026. NRO accounts are rupee-denominated bank accounts maintained by NRIs to manage income earned in India.