RBI report points to a short pause in foreign currency deposits as rupee-based savings gain more attention among NRIs.

The flow of NRI money into Indian banks has slowed noticeably. The Reserve Bank of India’s Monthly Bulletin for August 2025 shows that NRI deposit inflows dipped to $4.7 billion between April and July 2025, lower than $5.8 billion in the same stretch of 2024.

Yet, the total NRI deposit stock stayed almost steady at $167.86 billion by the end of July 2025.

How NRI Deposit Inflows Slowed to $4.7 Billion in 2025

The RBI data on NRI deposits shows that most of the drop came from Foreign Currency Non-Resident (Bank)accounts. FCNR(B) inflows fell sharply to $0.77 billion from $2.80 billion a year earlier.

At the same time, Non-Resident External (NRE) deposits grew to $2.41 billion compared to $1.78 billion last year.

Read More – Forgotten Bank Deposits Worth ₹42,270 Crore? RBI’s Refund Drive Makes It Easy to Claim

Banks say NRIs are favouring rupee accounts because of better returns and currency stability. The strong dollar also made foreign-currency accounts less attractive.

Deposit Type	April–July 2024 (US$ Billion)	April–July 2025 (US$ Billion)
FCNR (B)	2.8	0.77
NRE	2	2
Total	6	5

(Source: Reserve Bank of India, Monthly Bulletin – August 2025)

This is the first clear slowdown after two years of growth. Some bankers call it a “seasonal pause,” similar to the dip seen in early 2022 before inflows picked up again.

How Currency Rates Are Changing NRI Investment Plans

NRI deposits are savings kept by Indians living abroad. These accounts, NRE, NRO, and FCNR(B), let them earn interest in India while keeping money accessible overseas. The India foreign currency deposit report states that such deposits strengthen India’s foreign exchange reserves.

The slowdown doesn’t mean withdrawals. The RBI statistics on overseas deposits show that total balances are still inching upward.

Month-End	Outstanding Deposits (US$ Billion)	Annual Growth (%)
March 2024	164.7	9.9
April 2025	165	0
July 2025	168	0

Even with smaller new inflows, existing deposits are being renewed. That points to steady confidence, not panic.

What Caused the Fall in Foreign Currency Deposits?

Last year, a report titled “NRI Deposits Doubled to $7.8 Billion in April–August 2024” showed strong growth in overseas inflows.
The current slowdown now makes that rise look more like an exception than a trend. Interest rates abroad have become more attractive, and many NRIs are dividing their savings between Indian deposits and foreign bonds.

A related report on LoansJagat, Loan Growth Is Back? Why Nomura Picks ICICI Bank, SBI, and Axis Bank, explains how changing interest rates and liquidity conditions affect both domestic and overseas banking flows.

How Banks and the RBI May Bring NRI Money Back?

When a similar dip appeared in FY 2022, the RBI allowed banks to raise rates on FCNR(B) deposits. That move brought inflows back within months. The same measure could return if this slowdown stretches further.

Also Read – How To Recover Forgotten Money in Old Bank Accounts

Banks are already promoting rupee-based NRE accounts, calling them safer against currency swings. Some have started offering digital access and short-term fixed options to attract younger NRIs.

Conclusion

The NRI deposit inflow trends 2025 show a temporary slowdown, not a downturn. The RBI data on NRI deposits confirms that foreign savings are still finding their way into India, just through different routes.

The next India foreign currency deposit report will tell if this dip was a short pause or the start of a longer shift in NRI saving behaviour. For now, the base remains firm and the money keeps coming, just a little slower than before.

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