Non-Resident Indian (NRI) deposits in Indian banks witnessed a substantial increase of 23.3% during the financial year 2024–25 up to February, according to the latest data released by the Reserve Bank of India (RBI).
Between April 2024 and February 2025, total inflows from NRIs amounted to $14.55 billion, up from $11.8 billion during the same period in the previous fiscal year.
As of the end of February 2025, the total outstanding value of NRI deposits stood at $160.33 billion. A large part of this increase has been attributed to Foreign Currency Non-Resident (Bank) or FCNR(B) accounts, which saw the highest growth among all deposit categories.
FCNR(B) accounts, which allow NRIs to hold deposits in freely convertible foreign currencies, recorded inflows of $6.75 billion in the April–February period. This marked a rise from $5.53 billion seen in the same span last year.
By February-end, the total value of funds parked in FCNR(B) accounts had reached $32.49 billion. These accounts offer protection against currency fluctuation risks and are typically maintained for durations ranging from one to five years.
Non-Resident External (NRE) deposits also saw robust growth. Inflows into these accounts stood at $4.01 billion during the eleven-month period, up from $2.63 billion in the corresponding period of the previous year. The outstanding value of NRE deposits reached $97.93 billion by February 2025.
NRE accounts, maintained in foreign currency and fully repatriable, continue to serve as a popular channel for NRIs sending money back to India.
Meanwhile, Non-Resident Ordinary (NRO) accounts saw a more modest increase. These accounts received inflows of $3.79 billion between April and February, compared to $3.63 billion in the same period last year.
NRO deposits, which are rupee-denominated, are typically used to manage income generated in India such as rent, dividends, or pensions. The total amount held in NRO accounts stood at $29.9 billion as of December 2024.
Despite the overall rise in NRI deposits, there was a slight sequential decline towards the end of the period. The total outstanding NRI deposits dropped by $873 million in February when compared to the $161.21 billion recorded in January 2025.
The surge in FCNR(B) and NRE accounts indicates a continued confidence among NRIs in the Indian banking system and suggests that external factors such as global interest rate trends and currency expectations may have contributed to the shift in deposit patterns.
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