NRIs Pull $2 Billion From Indian Bank Deposits as West Asia Tensions Hit Inflows
Updated
Updated · The Economic Times · May 23
NRIs Pull $2 Billion From Indian Bank Deposits as West Asia Tensions Hit Inflows
5 articles · Updated · The Economic Times · May 23
$2 billion in March withdrawals pushed NRI bank deposits into monthly net outflow, with non-residents taking out more than they placed in Indian banks.
$14.41 billion in 2025-26 inflows, down from $16.16 billion a year earlier, reflected weakening deposit momentum as geopolitical uncertainty deepened.
NRERA and NRO accounts drove the outflows, while FCNR(B) balances were broadly steady—showing the pressure was concentrated among workers in West Asia rather than Indians settled in the West.
$98.56 billion in NRERA deposits and $33.33 billion in NRO deposits at March-end were both below year-earlier levels, and bankers warn a prolonged West Asia conflict could further hurt NRI livelihoods and savings flows.
With deposits down but remittances up, is India facing an NRI capital crisis or an investment boom?
Is Mideast conflict pushing NRI money from safe bank deposits to India's volatile stock market?