NRIs’ rupee, forex deposits bolstered reserves in FY23

The Reserve Bank of India’s decision to exempt cash reserve ratio and statutory liquidity ratio on fresh inflows through NRI deposit schemes, and relax the interest rate cap, has led to a surge in foreign currency non-resident (bank) or FCNR (B) deposits. Fresh inflows through various NRI deposit schemes more-than-doubled to $7.9bn in FY23 from $3.2bn in FY22, while net inflows for FCNR (B) deposits were $2.4bn compared to outflows of $3.5bn in the previous year.