Money inflows into NRI deposits doubled to $6.11 billion in the current year

Mumbai: After the steps taken by the Reserve Bank in July 2022 to increase flows in Non-Resident Indians (NRI) accounts, an increase in NRIS deposits is being seen. Amid global geopolitical turmoil, NRIs seem to be finding it safer to keep money in India.

Money inflows into Non-Resident Indians (NRIs) deposits doubled year-on-year to $6.11 billion in the April-October period of the current year from $3.05 billion in the same period last year.

Apart from this, there has been an inflow of 2.06 billion dollars in Foreign Currency Non-Resident (FCNR) which was an outflow of 81.40 million dollars in this period last year.

In July last year, the Reserve Bank relaxed the interest rate cap for FCNR (B) and NRE deposits. The Reserve Bank is continuously taking steps to increase the flow of dollars in the country.

As a result of relatively high interest rates, non-resident Indians are attracted to domestic debt instruments, an expert said.

As against three to three and a half percent returns in American banks, five to six percent returns are being released in Indian banks. A large number of NRI deposits in India also come from the Gulf countries. Gulf banks are also not seeing attractive returns.

FCNR (B) inflows have also increased due to Indian employees going to work abroad again after Corona.