Foreign currency non-resident (bank), or FCNR (B), deposit inflows declined sharply in April 2026 from a year earlier, although total inflows across non-resident deposit schemes rose marginally to $764 million from $751 million in April 2025.
According to data from the Reserve Bank of India (RBI), inflows into FCNR (B) deposits fell 39 per cent year-on-year (Y-o-Y) to $166 million in April, compared with $272 million in the corresponding month last year. Outstanding FCNR (B) deposits stood at $33.9 billion.
Recently, the RBI operationalised a special FCNR (B) deposit scheme under which the central bank effectively absorbs the entire hedging cost on such deposits, estimated at around 3.5 per cent. The measure is aimed at attracting dollar inflows into the country and supporting the domestic currency, which had come under depreciation pressure against the US dollar. Estimates of potential FCNR (B) inflows vary widely, ranging from $20 billion to over $40 billion. However, these numbers will start reflecting from June onwards.
Meanwhile, inflows into non-resident external rupee account (NRE account) deposits stood at $528 million in April, up 40 per cent Y-o-Y from $376 million in the same month last year. Outstanding NRE deposits stood at $98.47 billion.
In contrast, inflows into non-resident ordinary (NRO) deposits declined 31 per cent Y-o-Y to $71 million during April. Outstanding NRO deposits stood at $33.2 billion.
Overall, outstanding NRI deposits stood at $165.59 billion at the end of April, compared with $165.43 billion a year earlier.
Inflows into India’s non-resident deposit schemes moderated in 2025-26 (FY26). Flows into non-resident Indian (NRI) deposits stood at $14.41 billion in FY26, compared with $16.16 billion in FY25.
FCNR (B) deposits recorded inflows of $946 million in FY26, sharply lower than $7.08 billion in FY25. NRE account deposits recorded inflows of $7.94 billion during FY26, higher than $4.71 billion in FY25. NRO deposits saw inflows of $5.53 billion in FY26, compared with $4.37 billion in the previous financial year.