Decline seen in NRI deposits by 23% in First Quarter of Current Financial Year
Mumbai: Fresh deposits from non-resident Indians (NRIs) fell 23 per cent year-on-year to USD 2.775 billion during April-June 2026, according to the latest data from the Reserve Bank of India (RBI).
Inflows stood at USD 3.614 billion during the corresponding period of fiscal 2026.
Despite a decline in fresh inflows, the total outstanding value of NRI deposits edged up to USD 168.506 billion at the end of June 2026 from USD 168.327 billion a year earlier.
The increase was supported by growth in non-resident ordinary (NRO) and foreign currency non-resident (bank) (FCNR(B)) deposits.
Inflows into FCNR(B) deposits more than doubled during the first quarter of FY27. They rose to USD 1.732 billion from USD 774 million in the year-ago period, marking an increase of around 124 per cent.
Outstanding FCNR(B) deposits also increased to USD 35.487 billion at the end of June 2026 from USD 33.583 billion a year earlier. Every month, the outstanding amount rose from USD 34.038 billion at the end of May to USD 35.487 billion at the end of June.
The surge in FCNR(B) deposits came after the RBI introduced a special FCNR(B) window at its June monetary policy meeting.
Under the facility, the central bank agreed to bear the cost of currency hedging to encourage foreign capital inflows and strengthen India’s external position.
The RBI subsequently decided to close the window for fresh FCNR(B) deposits under the special swap facility on 31 August. The original closure window was scheduled for 30 September.
FCNR(B) deposits accounted for the largest share of the inflows at USD 65.397 billion. Overseas foreign currency borrowings (OFCBs) contributed USD 4.86 billion, while external commercial borrowings (ECBs) accounted for USD 2.591 billion.
Among other NRI deposit categories, non-resident (external) rupee account (NRE) deposits stood at USD 98.757 billion at the end of June 2026. Non-resident ordinary (NRO) deposits stood at USD 34.262 billion during the same period.
The data indicates that while overall fresh NRI deposit mobilisation weakened in the first quarter, foreign currency deposits gained traction during the period. The rise in FCNR(B) deposits coincided with the RBI’s special facility aimed at attracting foreign exchange into the country. (BVI)
