Mumbai, July 23, 2026: India’s efforts to attract foreign currency from overseas Indians have produced a sharp response, even though regular NRI deposit inflows declined during the first two months of the current financial year.
Reserve Bank of India data cited by Business Standard show that net inflows into NRI deposit schemes fell by 29.25 per cent to $1.33 billion during April and May 2026, compared with $1.88 billion during the same period a year earlier.
Total outstanding NRI deposits stood at approximately $165.96 billion at the end of May 2026.
The category includes Foreign Currency Non-Resident Bank deposits—FCNR(B)—Non-Resident External accounts and Non-Resident Ordinary accounts.
Different deposit categories show contrasting trends
FCNR(B) inflows declined from $442 million to $282 million during April–May, while NRE inflows fell from $1.01 billion to $597 million.
NRO inflows, however, increased moderately from $434 million to $451 million.
The RBI attributed the overall early-year slowdown mainly to weaker NRE and FCNR(B) flows.
June incentive produces strong response
The picture changed after the RBI introduced a concessional swap facility for fresh FCNR(B) deposits on June 5.
According to figures cited from an RBI bulletin, fresh FCNR(B) inflows reached $17.4 billion between June 8 and July 17, 2026. Related overseas foreign-currency borrowing and external commercial borrowing brought in another $1.97 billion and $1.34 billion respectively.
The April–May figure and the later $17.4-billion figure cover different periods and measures and should not be treated as directly comparable.
The programme is part of India’s effort to increase foreign-currency availability and manage pressure on the rupee. FCNR(B) deposits can also limit exchange-rate exposure for depositors because the account remains denominated in an eligible foreign currency.
Interest rates, taxation, early-withdrawal conditions and deposit protection can vary. NRIs should therefore examine a bank’s terms and obtain qualified financial or tax advice before investing.
