NRI Deposits See Strong 23% Growth Till February FY25: RBI

Non-resident Indian (NRI) deposit inflows witnessed a significant rise of 23% during the first eleven months of FY25, according to the latest data from the Reserve Bank of India (RBI). From April 2024 to February 2025, NRIs parked ₹1,24,388 crore (US$ 14.55 billion) in Indian deposit accounts, compared to ₹1,00,878 crore (US$ 11.8 billion) during the same period a year ago.

At the end of February 2025, the total outstanding NRI deposits stood at ₹13,70,661 crore (US$ 160.33 billion). However, on a month-on-month basis, the figure slightly declined from ₹13,78,184 crore (US$ 161.21 billion) in January 2025, reflecting a dip of ₹7,463.28 crore (US$ 873 million).

FCNR (B) Deposits Lead the Inflows

Among the three key deposit types—Foreign Currency Non-Resident (FCNR-B), Non-Resident External (NRE), and Non-Resident Ordinary (NRO)—FCNR (B) deposits recorded the highest inflows in this period. Between April 2024 and February 2025, these deposits received ₹57,706 crore (US$ 6.75 billion), up from ₹47,276 crore (US$ 5.53 billion) a year earlier.

The outstanding amount in FCNR (B) accounts reached ₹2,77,757 crore (US$ 32.49 billion) by the end of February. These accounts, denominated in freely convertible foreign currencies, offer NRIs a hedge against currency risk, as funds are insulated from rupee depreciation over the tenure of 1 to 5 years.

Read More: RBI Data: India’s Net FDI Drops to $1.5 Billion in Apr-Feb Due to Increased Outflows. 

NRE Deposits Also Witness Strong Uptick

NRE deposits also posted robust inflows, totalling ₹34,281 crore (US$ 4.01 billion) during the period under review. This was a notable jump from ₹22,484 crore (US$ 2.63 billion) recorded in the same period last year. The outstanding balance in NRE accounts stood at ₹8,37,204 crore (US$ 97.93 billion) by February-end.

NRE deposits allow NRIs to remit foreign earnings into Indian rupee accounts, with full repatriability and tax exemptions on both interest and principal.

NRO Deposits Maintain Steady Presence

While NRO deposits did not see a significant rise in inflows compared to FCNR and NRE accounts, the outstanding balance remained strong at ₹2,55,615 crore (US$ 29.9 billion) as of December 2024. These accounts typically serve NRIs with income generated within India, such as rent, dividends, or pension payments.

Conclusion 

The sharp uptick in NRI deposit inflows suggests renewed confidence among non-residents in India’s financial ecosystem, potentially driven by favourable interest rate differentials, a stable macroeconomic environment, and robust banking infrastructure.

While the RBI data does not elaborate on the reasons for the increase, market watchers believe foreign currency safety, tax benefits, and growing rupee stability could be influencing this renewed interest in India-based deposits.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.