Non-resident Indian (NRI) deposit inflows experienced a dramatic surge to $121.94 billion in the April-August period of FY27, representing a massive increase from $5.6 billion during the same period in FY26, according to Reserve Bank of India (RBI) data. This substantial growth was primarily driven by strong Foreign Currency Non-Resident (B) deposits following the RBI's introduction of a concessional swap facility in June 2026. The latest data confirms that this surge was mainly due to the concessional swap facility, which led to the mobilization of $133 billion by August 31, 2026.
Foreign Currency Non-Resident (B) deposits emerged as the primary driver of this surge, with flows reaching $120.94 billion during April-August 2026 compared to just $620 million in the corresponding period of FY26. As reported by Business Standard, FCNR(B) accounts now hold $154.69 billion in outstanding amounts as of August 2026, up from previous levels. These accounts allow customers to maintain fixed deposits in India using freely convertible foreign currencies for tenures ranging from one to five years, providing protection against currency fluctuations. An FCNR(B) account lets customers maintain a fixed deposit in India in freely convertible foreign currencies for a tenure ranging from one to five years, since the account is maintained in foreign currency, it protects funds against currency fluctuations during the deposit's tenure.
The total outstanding NRI deposits reached $286.48 billion at the end of August 2026, showing significant growth from $200.89 billion in July 2026 and $166.80 billion in August 2025. According to RBI data, this growth reflects the mobilization of $133 billion by August 31, 2026, primarily attributed to the concessional swap facility introduced in June. The RBI noted that net inflows under non-resident deposits rose sharply in August 2026, reflecting increased FCNR(B) deposits due to recent policy measures.
While FCNR(B) deposits dominated the growth, NRE deposits saw an outflow of $1.29 billion during April-August 2026, compared with $3.14 billion in the corresponding period of FY26. Outstanding NRE deposits stood at $96.43 billion in August 2026 against $98.02 billion in August 2025. NRO deposits also recorded inflows worth $2.29 billion in April-August 2026, compared with $1.88 billion during the same period last year, with total outstanding amount reaching $35.35 billion in August 2026, compared with $34.59 billion previously. An NRO account is a rupee-denominated bank account for NRIs.
