Big Drop in NRI Deposits in 2025 — Should India Be Worried?

Fresh NRI deposit inflows fell sharply in 2025, led by FCNR(B). Balances stayed near $168 billion, but banks are watching overseas rate shifts closely now.

NRI deposit flows into Indian banks slowed through 2025 after a strong FY25 run. The latest data point came via a Business Standard report dated January 21, 2026, which showed total inflows into NRI deposits fell 26.56% to $9.2 billion in April to November 2025 versus $12.55 billion a year earlier. 

The drag was concentrated in dollar-linked deposits, while rupee accounts stayed steadier. Separately, an Informist update published January 21, 2026 flagged slightly lower provisional outstanding balances for end-November, showing small month-end revisions. 

What Is The Issue: Inflows Down, FCNR(B) Takes The Hit?

The headline is the drop in fresh inflows during April to November 2025. In that window, total inflows slipped to $9.2 billion from $12.55 billion a year earlier, as reported by Business Standard on January 21, 2026. 

The pressure was mainly in FCNR(B), where inflows fell to $1.86 billion from $6.31 billion. In contrast, NRE and NRO posted higher inflows versus last year.  

Why The Drop Looks So Steep In 2025?

The cooling is coming right after a strong base. FY25 saw NRI deposit inflows touch $16.2 billion, the highest in 11 years, helped by attractive deposit rates and a weaker rupee, according to The Economic Times report last updated May 23, 2025. 

Deccan Chronicle, published May 25, 2025, also carried the FY25 inflow figure of $16.2 billion, up from $14.7 billion in FY24. 

By mid-2025, the slowdown started showing up in shorter windows. Business Standard, last updated October 21, 2025, reported inflows moderated to $4.7 billion in April to July 2025, from $5.8 billion a year earlier, with FCNR(B) inflows down to $772 million from $2.8 billion. 

LoansJagat, dated October 23, 2025, echoed the $4.7 billion April to July figure and also cited FCNR(B) inflows at $0.77 billion versus $2.80 billion. 

The broad reason being tracked in news coverage is the narrowing appeal of parking dollars in Indian deposits when global yields stay competitive. Mathrubhumi, last updated November 27, 2025, linked the H1 FY26 dip to tighter interest-rate differentials and a shift of money towards equities. 

Previous Developments: The Build-Up Through FY25 And Early FY26

The earlier months show a step-by-step easing rather than a single shock. In H1 FY26 (April to September 2025), fresh NRI deposits fell 40% to $6.1 billion, from $10.2 billion a year earlier, Mathrubhumi reported on November 27, 2025. It also flagged that the fall was most pronounced in FCNR(B), with inflows down 87% YoY in that half, and said July and August saw withdrawals rather than additions in those accounts. 

On the outstanding side, balances remained elevated. Business Standard, updated December 22, 2025, reported outstanding NRI deposits at $168.78 billion at end-October 2025, up from $162.69 billion a year earlier. 

The Economic Times, last updated December 23, 2025, also put total NRI deposits at $168.1 billion in October 2025, with FCNR(B) at $34.39 billion and NRE around $100 billion. 

A quick timeline captures how the story evolved across the year.
 

The takeaway from this sequence is straightforward: inflows cooled first, balances stayed high, and FCNR(B) carried most of the swing. 

What Stakeholders Are Saying?

Bankers have earlier linked the FY25 surge to rate-led positioning and currency expectations. The Economic Times report last updated May 23, 2025 quoted Joy P V of Federal Bank indicating NRIs were locking in deposits when they expected rates to be near the top, with rupee depreciation also supporting flows. 

On the 2025 slowdown, Mathrubhumi’s November 27, 2025 report cited analysts pointing to shrinking India-global rate gaps and a tilt towards equities. 

Conclusion

NRI deposit inflows cooled in 2025, largely because FCNR(B) lost pace. Balances are still near $168 billion, but the next trend will track global rates and risk appetite.