NRI deposits slide 23% in Q1 FY27, RBI data shows

Non-resident Indian deposits registered a significant contraction in the first quarter of the current financial year, with fresh inflows declining by nearly a quarter compared to the same period last year. New NRI deposits totaled $2.775 billion during April-June 2026-27, down from higher levels in the preceding year, according to data released by the Reserve Bank of India.

The decline in quarterly deposits underscores evolving patterns in capital flows from overseas Indians, which have been influenced by varying interest rate differentials and global economic conditions. The pullback in fresh deposits during the opening months of FY27 reflects broader trends in non-resident financial behavior and their investment preferences.

However, the overall quantum of NRI deposits maintained considerable strength, reaching $168.506 billion as of June 30, 2026. This larger stock of accumulated deposits demonstrates that despite the year-on-year contraction in fresh inflows, the aggregate base of NRI funds lodged in Indian banks remains substantial and continues to serve as an important source of external resources for the financial system.

NRI deposits—comprising rupee deposits, non-resident external accounts, and non-resident ordinary accounts—have long been viewed as a relatively stable component of foreign currency inflows. The modulation in fresh deposit additions during the quarter suggests that policymakers and analysts will be watching closely for trends in the months ahead to assess whether the decline represents a temporary adjustment or signals a broader shift in NRI investment patterns.