Inflows into NRI deposit schemes jumped 678% year-on-year to $36.24 billion in April-July FY27, driven almost entirely by a concessional FCNR(B) swap facility the RBI introduced in June that has already mobilised $133 billion.
The Numbers Behind The Surge
According to RBI data, flows into non-resident Indian (NRI) deposit schemes rose 678.2 per cent to $36.24 billion in the April-July period of FY27, up sharply from just $4.66 billion in the same period a year earlier. The primary driver was a concessional swap facility the RBI introduced in June, which has led to the mobilisation of $133 billion by August 31.
Total outstanding NRI deposits stood at $200.89 billion as of end-July 2026, up from $168.51 billion in June 2026 and $167.86 billion a year earlier in July 2025.
Where The Money Went
FCNR(B) deposits accounted for almost all of the surge: inflows hit $34.53 billion in April-July, against just $772 million in the same period a year earlier. Outstanding FCNR(B) balances rose to $68.28 billion by July. By contrast, NRE deposit inflows were comparatively modest at $207 million for the period, sharply down from $2.42 billion a year earlier, with outstanding NRE deposits actually declining to $98.02 billion from $102.03 billion. NRO deposits saw inflows of $1.51 billion, broadly similar to $1.47 billion a year earlier, with outstanding NRO balances at $34.59 billion.
The Outward Flow Side
In the same period, outward remittances under the Liberalised Remittance Scheme (LRS) for resident individuals rose 4.7 per cent year-on-year to $9.37 billion, led by overseas investment activity. Remittances for investment in equity and debt doubled to $1.4 billion, while deposit-related remittances rose 39.3 per cent to $330.32 million, and remittances for purchasing immovable property rose 13.34 per cent to $185.33 million. Travel-related remittances fell 1.31 per cent to $5.27 billion, and spending on overseas education dropped 30.6 per cent to $472.66 million, suggesting Indians are redirecting outward money flows toward investment and away from discretionary travel and education spending, at least for this period. In July alone, remittances rose 5.3 per cent year-on-year to $2.45 billion, supported by higher overseas investment and international travel.
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Why It Matters
The scale of the FCNR(B) surge, from under $1 billion to over $34 billion in inflows year-on-year, is a direct and measurable result of a specific RBI policy lever: the concessional swap facility introduced in June. That makes this less a story about organic NRI sentiment shifting toward India and more a story about how effectively a single, deliberately designed incentive can redirect tens of billions of dollars in capital flows within a few months, a data point that matters for how the RBI thinks about managing external-sector inflows and, by extension, domestic rupee liquidity (an issue the central bank has separately been managing through currency swaps of its own, in the other direction).
