Money flowing into non-resident Indian (NRI) deposits fell substantially to $3.23 billion from April 2021 to March 2022, compared to $7.36 billion the previous year.
At the end of March 2022, outstanding deposits had decreased to $139.02 billion. According to Reserve Bank of India (RBI) figures, this is up from $141.89 billion a year earlier.
Previously, when NRI deposits increased by nearly $10 billion from $130.58 billion in March 2020 to $141.89 billion in March 2021, the polar opposite scenario. FCNR deposits, or foreign currency deposits, suffered the most decrease. They have decreased from $20.47 billion in March 2021 to $16.91 billion in March 2022.
According to bankers, changes in global financial circumstances and inflation will shape the future flow of deposits. The activity of NRI deposits is also influenced by remittances and interest rates in the home market. In March 2022, the money in rupee-denominated NRE deposits fell to $100.8 billion from $102.57 billion a year earlier.
Non-resident ordinary accounts, on the other hand, increased from $18.84 billion in March 2021 to $21.30 billion in March 2022.
Following Russia’s invasion of Ukraine in late February, the foreign exchange flow picture has shifted dramatically. On May 6, 2022, India’s foreign exchange reserves fell to $596 billion. In 2021-22, they climbed by $30.3 billion to $607.3 billion.
Foreign exchange reserves climbed by $99.2 billion from 2020 to 2021, reaching $577 billion at the end of March 2021.
