Key Takeaways
• NRI deposit inflows jumped 23.3% to $14.55 billion between April 2024 and February 2025.
• FCNR(B) Deposits nearly doubled, leading growth across all NRI deposit categories.
• Stable currency, attractive interest, and global economic uncertainty drove stronger investor confidence in Indian banks.
Summary of Key Findings
- NRI deposit inflows grew by 23.3% year-on-year, from $11.8 billion to $14.55 billion.
- The biggest contributor to this growth was FCNR(B) Deposits, which almost doubled compared to last year.
- Other NRI deposit types also grew, though at different rates.
- Growth in inflows was helped by stable US dollar-rupee exchange rates, attractive interest rates set by banks, and a rise in confidence among investors.
- There was a short period when withdrawals were higher than deposits, but the full-year numbers still look strong.
- Overall, banks now hold a much larger pool of NRI deposits than before—up from $146.9 billion in December 2023 to $161.8 billion in December 2024.
Summary data and performance trends
To better understand this data, it is helpful to look at how NRI deposit inflows are divided into different account types. Indian banks offer three main deposit products for NRIs. Each one comes with its own features, rules, and uses, and each one has shown gains in the past year.
- Foreign Currency Non-Resident (Bank) [FCNR(B)] Deposits
These accounts let NRIs keep fixed deposits in big international currencies, not just in rupees. By holding money in these accounts, NRIs avoid losses that can happen if the rupee value drops compared to the US dollar or other strong currencies. In the 2024-25 financial year (up to January 2025), FCNR(B) Deposits grew sharply:
- Inflows reached $7.02 billion, up from $4.15 billion the year before.
- The outstanding balance in these deposits (the total amount still in banks) was $32.75 billion in January 2025, much higher than $25.73 billion a year earlier.
This means more and more NRIs now prefer the safety and currency stability that FCNR(B) Deposits offer. This account type had the fastest growth of all three NRI deposit schemes.
[For more on the rules and features of FCNR(B) Deposits, visit the Reserve Bank of India’s official page on Non-Resident Accounts: https://www.rbi.org.in/Scripts/FAQView.aspx?Id=46]
- Non-Resident External Rupee Account (NR(E)RA) Deposits
These accounts hold money in Indian rupees but the funds can be sent back out of India easily. The interest earned is not taxed in India. Over the last year:
- Inflows increased to $3.71 billion, compared to $2.69 billion the year before.
- As of January 2025, the outstanding balance in NR(E)RA deposits was $98.49 billion.
NR(E)RA accounts now make up about 60% of all NRI deposits. This makes them a firm favorite for those who want growth with the flexibility to send money back abroad.
- Non-Resident Ordinary (NRO) Account Deposits
These rupee-denominated accounts are for NRIs who want to manage or deposit income earned in India, like rent, pension, or dividends. In the 2024-25 financial year until January:
- Inflows saw a small rise to $3.58 billion, up from $3.32 billion last year.
- Total outstanding in NRO deposits was $29.96 billion in January 2025 (up from $27.52 billion in January 2024).
Growth is clear, but it is not as sharp as in the other two deposit types. NRO accounts often serve more day-to-day uses, such as handling Indian earnings, rather than being a way to save or invest larger sums.
A visual representation of account-wise NRI deposit growth would show a strong upward bar for FCNR(B) Deposits, a steady but sizable jump for NR(E)RA deposits, and a modest climb for NRO deposits.
NRI Deposit Growth Trend Over Time
The growth in NRI deposit inflows has not been limited to a single month or quarter. Instead, it has been steady across the financial year:
- By December 2024, inflows had already jumped by 42.8% year-on-year, reaching $13.33 billion compared to $9.33 billion for the same period in 2023.
- At the end of December 2024, the total outstanding NRI deposits were $161.8 billion, higher than $146.9 billion in December 2023.
- By January 2025, this large pool of deposits was still holding strong at $161.21 billion, up from $151.87 billion a year earlier.
- The second quarter (July–September) of FY25 alone saw deposits hit $6.2 billion, more than double the $3.2 billion recorded in Q2 of FY24.
A simple line chart showing monthly or quarterly deposit inflows would show a clear upward path, with a slight dip around October 2024, but then bouncing back by early 2025.
Interesting and notable points
Though the year showed mostly strong inflows, there was a short window of outflows between October 2024 and January 2025 where NRIs withdrew $1.5 billion more than they put in. This was unusual, as it broke the positive trend, but it only lasted for a few months. In the full fiscal year, inflows were still much higher than outflows, ending in a net year-on-year rise of 23.3%.
What factors drove this growth?
Several reasons explain why NRI deposit inflows climbed this year:
- Strong US Dollar vs. Rupee
A powerful driver was the strength of the US dollar against the Indian rupee. When the dollar is worth more against the rupee, NRIs get more value for every dollar or other foreign currency they send to India. This acts like a bonus when they deposit money at home.
- Attractive Interest Rates
Indian banks offered interest rates on NRI deposit products, including FCNR(B) Deposits, that were seen by many NRIs as higher than rates they could get in the US, UK, or other places. This draws more savings back to Indian banks.
- Seasonal Arrivals
A pattern occurs every year when large numbers of NRIs visit India between November and January. This period often sees a rise in deposits as people bring or send more money back home.
- Global Economic Uncertainty
When the world economy seems less stable or developed markets look risky, many NRIs prefer to put extra money in Indian accounts instead of stocks or real estate in other countries.
- Better Investor Confidence and Favorable Conditions
As global financial conditions have changed, and as India’s economy has stayed on a stable path, more NRIs felt safe about the idea of putting more money in India for their future. This trust in the system adds up over time.
Comparison with earlier years
Last year (2023-24), the growth in NRI deposit inflows was much less strong. For example, in the earlier period, the main rise in FCNR(B) Deposits was much smaller ($4.15 billion inflow compared to $7.02 billion this year). The same goes for other deposit types, as both NR(E)RA and NRO accounts showed smaller growth last year.
A table comparing year-on-year deposit inflows and outstanding balances across NRI account types would show the current year outpacing last year’s performance by a wide margin. FCNR(B) Deposits stand out as the fastest-growing type.
Why do these numbers matter?
Rising NRI deposit inflows mean Indian banks have more foreign currency and rupee savings to work with. These deposits help banks offer more loans, help manage currency risks, and support the country’s overall balance of payments. As the total size of NRI deposits rises, it also signals the positive mood among global Indians toward keeping their savings connected with their home country.
It is also notable that NRI deposits, especially FCNR(B) Deposits, act as a safety net for individual depositors. Since these can be held in dollars, pounds, or euros, people are protected if the rupee weakens. This is helpful for those who may later want to use that money in another country for their children’s studies or buying a home.
Implications for stakeholders
- For the Indian government and the Reserve Bank of India, strong and steady NRI deposit inflows help keep the country’s foreign exchange reserves healthy.
- Banks can offer competitive new products and interest rates, attracting more global Indians to save or invest money in the country.
- NRIs get options to protect their savings from currency drops while earning better interest.
- Policy makers watch these numbers closely, as a sharp drop could signal trouble, either at home or in the global economy. A sharp rise, as seen now, is usually welcomed as a sign of faith in the Indian system.
Limitations, risks, and considerations
While today’s numbers point to rising trust and interest in Indian bank deposits by NRIs, these flows can change quickly if factors like exchange rates, global conflicts, or risk events shift in a short span. Moreover, a single period of higher outflows (as seen from October 2024 to January 2025) can act as a reminder that these deposits are mobile and sensitive to news or policy changes.
Another limitation is that the numbers reflect past behavior and may not guarantee future trends. Interest rates, tax rules, and banking policies could shift in the coming year, affecting how attractive NRI deposits will be.
Statistics and data methodology
The information in this analysis has been taken directly from official Reserve Bank of India press releases and bulletins. Data on NRI deposit inflows, outflows, and account balances between April 2024 and February 2025 was matched year-on-year to compare growth in each deposit segment and the overall market. Sources were reviewed from the Reserve Bank’s own portal, as well as business news reports listed above. All figures only reflect periods for which data was available at the time of writing.
Conclusion and forward look
The year till February 2025 has marked a major jump in NRI deposit inflows, powered especially by a sharp climb in FCNR(B) Deposits and a growing trust among global Indians in Indian banks. While there was a brief hiccup with outflows late in 2024, the bigger story is the strong 23.3% net rise in deposits year on year. As reported by VisaVerge.com, the driving reasons include stable currency rates, attractive interest payments, and safer investor moods worldwide.
Looking ahead, the Reserve Bank of India and banking sector leaders are likely to keep a close watch on these ways of bringing in foreign money. The challenge will be to keep interest rates and conditions friendly for NRIs in the face of changes in the world. For those needing more details or wishing to open accounts, the Reserve Bank of India’s official Non-Resident Account FAQ offers clear steps and guidance, making it easier to keep up with the latest rules.
In summary, strong NRI deposit inflows signal healthy trust in India’s economic path and the ongoing role of foreign-based Indians in shaping the country’s banking future. Their deposits help fuel not only banks but the entire system—serving as both a boon for India and a smart move for overseas Indians.
Learn Today
NRI Deposit Inflows → The money deposited by Non-Resident Indians into Indian bank accounts, reflecting global Indians’ savings and investments.
FCNR(B) Deposits → Fixed deposits by NRIs held in foreign currencies, offering protection from rupee depreciation and interest income.
Reserve Bank of India → India’s central bank, overseeing monetary policy, currency, and regulation of banks including NRI deposits.
NR(E)RA Deposits → Non-Resident External Rupee Accounts, rupee-based deposits by NRIs with tax-free interest and easy repatriation.
NRO Deposits → Non-Resident Ordinary accounts for NRIs to manage income earned within India, often used for rent, dividends, or pension.
This Article in a Nutshell
NRI deposit inflows soared by 23.3% to $14.55 billion in 2024-25, with FCNR(B) Deposits showing the fastest growth. Driven by favorable interest rates, stable currency exchange, and global uncertainty, this trend signals growing trust among NRIs and strengthens the Reserve Bank of India’s economic outlook and foreign reserves.
— By VisaVerge.com
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