NRI dollar rush sends bank deposits soaring
Kolkata: India's foreign currency-linked non-resident deposits surged by $37 billion in just two months following the Reserve Bank of India's creation of a special window to attract dollar inflows. Bank deposits rose 15.4% year-on-year at the end of July, the fastest pace in nearly a decade. Bank credit growth accelerated to 19.4% during the same period, marking the quickest pace since June 14, 2024.
Scheduled commercial banks mobilized deposits at a faster rate than ever before, with growth rates surpassing 15.4% for the first time since December 9, 2016. India attracted nearly $41 billion in inflows by July 31, with FCNR-B deposits accounting for $36.72 billion. Banks are facing challenges in mobilizing local deposits as savers seek higher yields through market-linked investment products.
Written by urgent.news from The Economic Times's reporting — not their text. Machine-written — it may contain errors, so check the original before relying on it.
