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NRI deposit inflows jump nearly 7-fold, surge led by FCNR(B)
BusinessLine 2 hrs ago·27 Sept 2026, 1:31 pm
NRI deposits in Indian banks surged dramatically, with total inflows rising almost seven‑fold over the latest reporting period. The bulk of the increase came from FCNR(B) accounts, which are foreign‑currency deposits held by non‑resident Indians. At the same time, inflows into NRE (rupee‑denominated) accounts dropped sharply during the April‑July window.
These trends matter because NRI deposits are a key source of foreign exchange for the country. A shift toward FCNR(B) suggests that overseas investors are favouring foreign‑currency holdings, possibly to hedge against rupee volatility or to capture higher yields abroad, while the decline in NRE deposits points to reduced demand for rupee‑based assets.
Investors should keep an eye on RBI policy cues, exchange‑rate movements and any further data on NRI sentiment. Changes in interest‑rate differentials or regulatory tweaks could influence the balance between FCNR(B) and NRE inflows, affecting banks’ foreign‑currency exposure and overall market liquidity.
Excerpt from BusinessLine
RBI’s special measures to shore up foreign currency deposits led to an over seven-fold surge in total NRI deposits and a shift in their composition in the banking system during the first four months of FY27. Total NRI deposit inflows during April-July 2026 rose sharply to $36.2 billion, compared with just $4.6 billion…Read the original at BusinessLine
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