NRI Deposit

Inflows into NRI deposits more than double in April 2022-January 2023

Outstanding amounts stable in December compared to November

In July, the RBI took steps to enhance fresh inflows into NRI deposit accounts

NRE deposits were at $100.8 billion in March

Outstanding NRI deposits declined to $134.68 billion at the end of August 2022 from $141.52 billion a year ago

Outstanding deposits declined to $135.9 billion at the end of June 2022 from $141.5 billion a year ago.

If up to $50 billion is withdrawn from forex reserves to finance CAD, the country would still be able to meet nine month's imports. Any withdrawal beyond this could pose a problem

India's top promoters and business families' income jumped from equity dividends and share buybacks in FY22 while flow of money into NRI deposits moderated sharply to $3.23 bn in FY22.

Outstanding deposits have also gone down to $139.02 billion at the end of March 2022. This compares to $141.89 billion a year ago, according to Reserve Bank of India (RBI) data.

The foreign currency or FCNR deposits saw the maximum contraction

Outstanding NRI deposits stood at $125.68 billion in November, from $121.53 billion in October

Let's understand these two accounts and their characteristics in detail

Declaration will have to be submitted at specified branches of RBI, while depositing junked currency

With the backing of Tinbergen's rule and a proactive RBI, there's a possibility that repayments could come and go without much pain