NRI Deposit Inflows Hit $121.94 Billion as FCNR(B) Deposits Rise: RBI Data

Inflows into non-resident Indian (NRI) deposit schemes stood at $121.94 billion in April-August FY27, compared with $5.6 billion in the same period last year, according to a Business Standard news report citing Reserve Bank of India (RBI) data.  

The increase was mainly due to deposits held in foreign currency. Outstanding NRI deposits reached $286.48 billion at the end of August 2026. The total stood at $200.89 billion in July 2026 and $166.80 billion in August 2025. 

RBI Swap Facility 

The rise in deposits followed the RBI’s introduction of a concessional foreign exchange swap facility in June 2026. The facility was introduced to encourage banks to raise foreign currency deposits. Banks had mobilised $133 billion under the facility as of August 31. 

NRI deposit schemes include foreign currency non-resident (bank), or FCNR(B), deposits, non-resident external (NRE) deposits and non-resident ordinary (NRO) deposits. 

FCNR(B) Deposits Drive Inflows 

FCNR(B) deposits accounted for $120.94 billion of inflows during April-August FY27, against $620 million in the corresponding period a year earlier. The outstanding balance in these accounts reached $154.69 billion at the end of August 2026. 

FCNR(B) accounts allow NRIs to hold fixed deposits in India in freely convertible foreign currencies for periods ranging from one to five years. 

As the deposits remain in foreign currency, account holders are protected from exchange-rate fluctuations during the deposit tenure. 

NRE and NRO Deposit Trends 

NRE deposits recorded net outflows of $1.29 billion during April-August FY27, compared with $3.14 billion in the same period last year. Their outstanding balance stood at $96.43 billion at the end of August 2026, down from $98.02 billion a year earlier. 

NRO deposits recorded inflows of $2.29 billion during the five-month period, compared with $1.88 billion a year earlier.  

Outstanding NRO deposits rose to $35.35 billion in August 2026 from $34.59 billion in August 2025. These rupee-denominated accounts allow NRIs to manage income earned in India. 

Read More: Central Government Yet to Announce 3% DA Hike for 1.2 Crore Employees and Pensioners! 

Conclusion 

FCNR(B) deposits accounted for most of the increase in NRI deposit inflows during April-August FY27. NRE deposits recorded net outflows, while NRO deposits registered higher inflows than a year earlier. 

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.