However, the outstanding amounts in NRI deposits fell to $135.54 billion at the end of February 2023 from $136.82 billion in January 2023, according to the Reserve Bank of India data.
Bankers said inflows rose due to facilities like easing limits on interest rates. In July, the RBI took steps to enhance inflows into NRI accounts. These were easing caps on interest rates on Foreign Currency Non-Resident (Bank), or FCNR (B), and Non-Resident External (NRE) deposits, and exemption from maintaining the cash reserve ratio and statutory liquidity ratio on incremental deposits until November 4.
NRE deposits were $94.13 billion this February, down sequentially from $95.49 billion in January and $101.11 billion a year ago. NRE deposits were $100.8 billion in March 2022. Eligible NRIs can put money in NRE deposits in any foreign denomination and withdraw it in rupees.
Non-Resident Ordinary (NRO) are accounts where the money is kept in rupees and cannot be freely converted into foreign currency. NRO deposits slipped to $23 billion in February 2023 from $23.12 billion in January. But they were up from $21.16 billion a year ago.
First Published: Apr 21 2023 | 7:32 PM IST