Why did NRI deposit inflows decline by 16% in FY26?

NRI deposit inflows declined by 16% to $11.20 billion in the first nine months of FY26, primarily due to expectations of a weaker rupee and global uncertainties.

Which NRI deposit category saw the sharpest decline in FY26?

FCNR(B) deposits experienced the sharpest decline, falling by 68.4% to $2.04 billion in FY26.

What factors will influence future NRI deposit flows?

Future NRI deposit flows are expected to stabilize if the Indian Rupee remains stable and the RBI does not cut policy rates.

Home / Business and Economy / NRI Deposits Plummet 16% Amid Global Uncertainty

NRI Deposits Plummet 16% Amid Global Uncertainty

26 Feb

•

Summary

NRI deposit inflows fell 16% to $11.20 billion in FY26.
FCNR(B) deposits saw a sharp 68.4% decline to $2.04 billion.
Expectations of a weaker rupee tacticaly shifted NRI deposit strategies.

NRI Deposits Plummet 16% Amid Global Uncertainty

Non-Resident Indian (NRI) deposit inflows experienced a significant moderation, declining 16% to $11.20 billion in the first nine months of FY26. This marks a reversal from the robust growth seen in prior years, including a 42.8% surge in FY25. Experts attribute this slowdown primarily to currency expectations, suggesting that NRI investors anticipated a weaker rupee amid global uncertainties, leading to a tactical shift in their deposit strategies.

Analysis of deposit categories reveals a sharp decline of 68.4% in FCNR(B) deposits, falling to $2.04 billion in FY26. These foreign currency-denominated accounts typically protect against exchange rate risks. In contrast, rupee-denominated NRE deposits grew by 41.7%, and NRO accounts increased by 24.3%. Repatriable accounts, comprising FCNR(B) and NRE deposits, are highly sensitive to interest rate differentials and currency expectations.