The outstanding amounts in NRI deposits rose sequentially from $ 135.54 billion in February 2023 to $137.88 billion at the end of March 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 stood at $95.44 billion this March, down sequentially from $94.13 billion in February and $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 were almost flat at $23.09 billion in March 2023 from $23 billion in February. But they were up from $21.3 billion a year ago.
First Published: May 22 2023 | 11:13 PM IST