Context:
The flow of money from Overseas Indians in nonresident Indian (NRI) deposit schemes rose by 71 per cent to $12.5 billion between April and November 2024 from $7.30 billion that they put in these schemes during the same period in 2023, data released by the Reserve Bank of India (RBI) showed.
There has been an upsurge in remittances by Indians residing overseas to NRI deposit schemes in the past few years. These monies are for savings, support of family members, and other additional uses.
What are the types of NRI deposits?
- Foreign currency non-resident (FCNR) deposits
- These deposits are in foreign currencies and can be fixed deposits for one to five years.
- Non-resident external (NRE) deposits
- Another kind of NRI deposit.
- Non-resident ordinary (NRO) deposits
- These are yet another form of NRI deposit.
Which factors influence money flow to NRI deposits?
- Income source
- Income source of the depositor could influence the NRI deposit scheme that they will opt for.
- Remittance needs
- Remittance needs of the depositor could influence the NRI deposit scheme that they will opt for.
