NRI deposit inflows dip 23%; FCNR draws 124% more
Non-resident Indian deposits saw a significant year-on-year decrease in the first quarter. However, overall outstanding NRI deposits experienced a slight increase by June. Foreign Currency Non-Resident (Bank) deposits more than doubled during this...
By PTI |
Reuters
Mumbai: Deposits by non-resident Indians (NRIs) declined over 23 per cent year-on-year to USD 2.775 billion during April-June 2026-27, according to the latest Reserve Bank of India (RBI) data.
NRI deposits had recorded inflows of USD 3.614 billion in the April-June period of 2025-26.
Also Read: Citigroup, Axis Bank team up to leverage NRI deposits as RBI dollar inflows surge
Despite the moderation in fresh inflows, outstanding NRI deposits rose to USD 168.506 billion at end-June 2026 from USD 168.327 billion a year earlier, on the back of NRO and FCNR(B) deposits.
Inflows into Foreign Currency Non-Resident (Bank) or FCNR(B) deposits more than doubled to USD 1.73 billion during April-June 2026-27, data showed.
FCNR(B) deposits attracted USD 1.732 billion during the first quarter of 2026-27, compared with USD 774 million in the year-ago period, an increase of about 124 per cent.
The outstanding amount under FCNR(B) deposits rose to USD 35.487 billion at the end of June 2026 from USD 33.583 billion a year earlier.
On a month-on-month basis, outstanding FCNR(B) deposits increased from USD 34.038 billion at end-May 2026 to USD 35.487 billion at end-June 2026.
The central bank had introduced the special FCNR (B) window during the June monetary policy committee (MPC) meeting, including bearing the cost of currency hedging, to increase foreign capital inflows and bolster India's external position.
Also Read: RBI’s great dollar haul: Where are the $73 billion going?
However, on August 14, the central bank has decided to close the window for fresh FCNR(B) deposits under the special swap facility on August 31, one month ahead of the scheduled September 30 closure.
According to data reported by authorised dealer banks, the facility had attracted total forex inflows of USD 72.848 billion as of August 21, 2026.
FCNR(B) deposits accounted for the bulk of inflows at USD 65.397 billion, followed by OFCBs at USD 4.86 billion and ECBs at USD 2.591 billion.
Among other NRI deposit schemes, NR(E)RA deposits stood at USD 98.757 billion at end-June 2026, while NRO deposits stood at USD 34.262 billion.
NRI deposits had recorded inflows of USD 3.614 billion in the April-June period of 2025-26.
Also Read: Citigroup, Axis Bank team up to leverage NRI deposits as RBI dollar inflows surge
Despite the moderation in fresh inflows, outstanding NRI deposits rose to USD 168.506 billion at end-June 2026 from USD 168.327 billion a year earlier, on the back of NRO and FCNR(B) deposits.
Inflows into Foreign Currency Non-Resident (Bank) or FCNR(B) deposits more than doubled to USD 1.73 billion during April-June 2026-27, data showed.
FCNR(B) deposits attracted USD 1.732 billion during the first quarter of 2026-27, compared with USD 774 million in the year-ago period, an increase of about 124 per cent.
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The outstanding amount under FCNR(B) deposits rose to USD 35.487 billion at the end of June 2026 from USD 33.583 billion a year earlier.
On a month-on-month basis, outstanding FCNR(B) deposits increased from USD 34.038 billion at end-May 2026 to USD 35.487 billion at end-June 2026.
The central bank had introduced the special FCNR (B) window during the June monetary policy committee (MPC) meeting, including bearing the cost of currency hedging, to increase foreign capital inflows and bolster India's external position.
Also Read: RBI’s great dollar haul: Where are the $73 billion going?
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However, on August 14, the central bank has decided to close the window for fresh FCNR(B) deposits under the special swap facility on August 31, one month ahead of the scheduled September 30 closure.
According to data reported by authorised dealer banks, the facility had attracted total forex inflows of USD 72.848 billion as of August 21, 2026.
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FCNR(B) deposits accounted for the bulk of inflows at USD 65.397 billion, followed by OFCBs at USD 4.86 billion and ECBs at USD 2.591 billion.
Among other NRI deposit schemes, NR(E)RA deposits stood at USD 98.757 billion at end-June 2026, while NRO deposits stood at USD 34.262 billion.
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