NRI deposits surge over 20-fold to $121.94 billion in April-August

Non-resident Indian (NRI) deposits have registered a substantial growth trajectory in the April-August period of fiscal 2026-27, climbing to $121.94 billion compared with $5.6 billion during the same window in the previous year, according to latest Reserve Bank of India data.

The extraordinary surge, marking over a 20-fold increase year-on-year, reflects heightened investor interest in rupee-denominated assets available to overseas Indians. The expansion has been substantially supported by robust inflows into Foreign Currency Non-Resident (FCNR) deposits, which have attracted considerable capital following the central bank's introduction of concessional swap facility mechanisms.

The RBI's swap facility has provided NRIs with an attractive avenue to park their foreign exchange earnings while maintaining exposure to rupee assets, making it a compelling proposition amid current macroeconomic conditions. The facility permits banks to access foreign currency liquidity at concessional rates, thereby enabling competitive rates on FCNR deposits.

This momentum in NRI deposits represents a significant development for India's external sector management and forex reserves accumulation. Sustained NRI inflows provide a stable source of foreign exchange and support the rupee while reducing pressure on India's balance of payments position. The trend underscores continued confidence among overseas Indians in domestic economic prospects and banking sector stability.