NRI accounts clock 43 per cent leap in funds to $13.33 billion in April-Dec, ETCFO
Mumbai, The circulation of funds from Indians working abroad into non-resident Indian (NRI) financial institution accounts has shot up by 42.8 per cent to $13.33 billion between April and December 2024, in comparison with $9.33 billion throughout the identical interval in 2023, in response to the newest figures compiled by the Reserve Financial institution of India (RBI).
The whole excellent NRI deposits on the finish of December 2024 have gone as much as $161.8 billion from the corresponding determine of $146.9 billion in December 2023.
NRI deposit schemes embrace overseas foreign money non-resident (FCNR) deposits in addition to non-resident exterior (NRE) deposits, and non-resident bizarre (NRO) deposits that are held in rupees.
The very best flows to the tune of $6.46 billion got here into FCNR (B) deposits throughout the April-December 2024 interval, near double the quantity of $3.45 billion deposited in these accounts throughout the identical interval final 12 months. The excellent quantity in FCNR(B) accounts elevated to $32.19 billion on the finish of December.
An FCNR(B) account permits prospects to take care of a hard and fast deposit in India in freely convertible foreign currency echange for a tenure starting from one to 5 years. Because the account is maintained in overseas foreign money, it secures the cash in opposition to foreign money fluctuations throughout the tenure of the deposit.
NRE deposits recorded an influx of $3.57 billion throughout this era, in comparison with $2.91 billion in the identical interval of the earlier 12 months. Excellent NRE deposits stood at $99.56 billion in December 2024.
NRO deposits registered inflows to the tune of $3.29 billion in April-December 2024, up from $2.97 billion throughout the identical interval a 12 months in the past. The whole excellent quantity in NRO deposits was $30.04 billion in December 2024. An NRO account is a rupee-denominated checking account for NRIs.
The RBI had in early December hiked the rate of interest ceiling on Overseas Foreign money Non-Resident (FCNR-B) deposits, in order that banks might provide increased returns on these deposits. The step was taken to draw extra overseas foreign money into the nation to strengthen the rupee vis-a-vis the US greenback.
–IANS
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