From April to October, NRI remittances soar to a record $11.9 billion: RBI
INN/New Delhi, @Infodeaofficial
According to the most recent data compiled by the Reserve Bank of India (RBI), inflows into non-resident Indian (NRI) deposit accounts increased to $11.9 billion in April–October of the current fiscal year, nearly twice the corresponding amount of $6.1 billion for the same period last year.
As of October 2024, there were $162.7 billion in total outstanding NRI deposits, up from $143.5 billion in the same period the previous year. Foreign currency non-resident (FCNR), non-resident external (NRE), and non-resident ordinary (NRO) deposits are among the NRI deposit programs. Additionally, data indicates that FCNR (B) deposits saw the largest inflows, totaling $6.1 billion, nearly double the $2.1 billion placed during the same time previous year. $31.87 billion was the total sum in these accounts.
Because they can keep fixed deposits for one to five years, which allows them to earn higher income, these accounts are preferred by Indians who work abroad. These deposits are protected against changes in the rupee because these accounts are in foreign currency. In its monetary policy review earlier this month, the RBI increased the interest rate caps on FCNR (B) accounts in an effort to draw in additional flows and boost the nation’s foreign exchange reserves. Strong economic fundamentals are reflected in rising foreign exchange reserves, which also provide the RBI additional leeway to stabilize the rupee when it becomes volatile.
Between April and October, NRO deposits increased to $2.66 billion from $2 billion in the same period last year. According to the most recent data gathered by World Bank economists, India would receive the most remittances in 2024, with an expected influx of $129 billion. According to a World Bank blog article, the growth rate of remittances is predicted to be 5.8% this year, up from 1.2% in 2023.
Remittances have been primarily driven by the recovery of the labor markets in the high-income nations of the Organization for Economic Co-operation and Development (OECD) since the start of the COVID-19 epidemic. According to the analysis, this is particularly true for the US, where employment of foreign-born workers has been gradually increasing and is already 11% more than it was in February 2020, before the pandemic.