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India NRI deposits — NRE, FCNR(B) & NRO schemes

Q: What is the difference between NRE, FCNR(B) and NRO accounts?

An NRE (Non-Resident External) account is rupee-denominated, freely repatriable and the interest is tax-free in India, but it carries exchange-rate risk for the depositor. An FCNR(B) account is held in foreign currency, so the depositor bears no rupee exchange risk and it is fully repatriable. An NRO (Non-Resident Ordinary) account is rupee-denominated for income earned in India, with interest taxable and repatriation subject to limits.

Q: Why do NRI deposits matter for banks and the rupee?

NRI deposits are a sizeable, relatively stable source of foreign-currency and rupee funding for Indian banks, and a steady financing item for the external accounts alongside the current account. Inflows tend to rise when Indian deposit rates are attractive relative to global rates and the rupee is stable; the RBI at times eases interest-rate ceilings or reserve requirements on these schemes to encourage inflows and support the rupee.

Q: Are NRI deposits part of India's external debt?

Yes. NRI deposits are counted within India's external debt because they are liabilities owed to non-residents. They sit alongside external commercial borrowings, short-term trade credit and multilateral and bilateral loans in the external-debt composition, recently around $160 billion of the total.

Quick answerNRI deposits are money kept with Indian banks by Non-Resident Indians under RBI schemes — recently of the order of $160 billion in total, and one of the larger pieces of India’s external debt. The three main schemes differ on currency and tax: NRE (rupee, repatriable, tax-free) is the largest at about 62.5% of the total, FCNR(B) (foreign currency, no rupee risk) and NRO (rupee, for India income, taxable). They are a stable funding source for banks and a steady financing item for the external accounts. These are approximate recent magnitudes; see RBI external-sector data for exact figures.

Total NRI deposits

~$160bn

NRE share

~62.5%

FCNR(B) outstanding

~$32bn

NRO outstanding

~$28bn

The chart above is a visual summary; the table below carries the same figures so they are readable without JavaScript — for accessibility and AI answer engines.

NRI-deposit outstanding by scheme (USD billion, approximate)

Scheme	USD billion (approx)	Share
NRE (Non-Resident External) rupee deposits	100	62.5%
FCNR(B) (Foreign Currency Non-Resident Bank)	32	20.0%
NRO (Non-Resident Ordinary) rupee deposits	28	17.5%
Total NRI deposits	160	100%

Illustrative recent end-period magnitudes based on RBI / DBIE external-sector statistics; figures are approximate and rounded and scheme shares may not sum exactly to 100% due to rounding. Exact, latest monthly NRI-deposit data is published by the RBI.

How the three schemes differ

Feature	NRE	FCNR(B)	NRO
Currency	Indian rupee	Foreign currency	Indian rupee
Source of funds	Foreign earnings	Foreign earnings	Income earned in India
Repatriable	Freely	Freely	Within limits
Interest taxable in India	No	No	Yes
Rupee exchange risk on depositor	Yes	No	Yes

What it means for bankers

NRI deposits are a meaningful, relatively sticky slice of bank funding and a steady financing item alongside the current account. Because FCNR(B) balances are in foreign currency, they add to a bank’s forex liabilities and are sensitive to global interest rates and hedging costs; NRE and NRO are rupee books that behave more like ordinary term and savings deposits. Inflows strengthen when Indian deposit rates are attractive relative to global rates and the rupee is stable, so they tend to support the currency. As liabilities to non-residents, the whole pool is counted within external debt, and healthy reserve cover keeps that comfortable.

Key terms in this dataPlain-English definitions of the terms behind this dashboard — see the full Indian banking glossary. Forex reserves

More live dataExplore BankPulse’s other live RBI dashboards: External Debt · Current Account / CAD · Foreign Exchange Reserves · FDI & FPI Flows · USD/INR Exchange Rate.

NRI deposits FAQ

What are NRI deposits?

NRI deposits are bank deposits held with Indian banks by Non-Resident Indians and Persons of Indian Origin under RBI-notified schemes - mainly NRE, FCNR(B) and NRO. The total outstanding is recently around $160 billion and is one of the larger components of India's external debt.

What is the difference between NRE, FCNR(B) and NRO accounts?

NRE is rupee-denominated, freely repatriable and tax-free in India but carries rupee exchange risk for the depositor. FCNR(B) is held in foreign currency, so the depositor bears no rupee exchange risk and it is fully repatriable. NRO is rupee-denominated for income earned in India, with taxable interest and repatriation limits.

Why do NRI deposits matter for banks and the rupee?

They are a sizeable, relatively stable source of foreign-currency and rupee funding for banks and a steady financing item for the external accounts. Inflows rise when Indian deposit rates are attractive versus global rates and the rupee is stable; the RBI at times eases rate ceilings or reserve requirements to encourage inflows and support the rupee.

Are NRI deposits part of India's external debt?

Yes - they are liabilities owed to non-residents, counted within external debt alongside ECB, short-term trade credit and multilateral/bilateral loans, recently around $160 billion of the total.

Methodology & sources: see how BankPulse dashboards are sourced, verified & updated · machine-readable NRI-deposits JSON feed.

Last reviewed 19 Jun 2026 by Vikram Jain

Source: RBI / Database on the Indian Economy (DBIE) external-sector statistics, rbi.org.in. Scheme-wise magnitudes are approximate recent values and are rounded; for exact, latest figures see the RBI external-sector release. We never reproduce RBI text verbatim. Reviewed by Vikram Jain. Last updated 19 Jun 2026, 15:03 IST.