Flows of money from overseas Indians into NRI deposit schemes dropped 23.24% to $2.78 billion during the April-June quarter of FY27, down from $3.61 billion in the same period a year earlier, according to Reserve Bank of India data. Total outstanding NRI deposits stood at $168.51 billion at the end of June 2026, up from $165.96 billion in May 2026 and $168.33 billion in June 2025.
Read alongside our earlier coverage of a record dollar deposit drive, this figure understandably raises a question. We reported in August that India had raised more than $56.85 billion under the RBI’s concessional FCNR(B) swap facility, and that the central bank had closed the scheme a month early because inflows had run so far ahead of forecast. A 23% year-on-year decline in the same quarter looks, on the surface, like the opposite story.
It is not a contradiction. It is a timing gap.
Why the two figures do not conflict
The RBI’s quarterly deposit bulletin, the source of this week’s headline figure, covers April, May and June 2026. The concessional swap facility that drove the record inflows we reported in August was announced on 5 June 2026 and only became operational on 8 June, giving it barely three weeks inside this specific quarter before it closed.
The RBI’s own bulletin makes this explicit. “Following the policy measures announced by the Reserve Bank on non-resident deposits and external commercial borrowings on June 5, 2026, there was a surge in FCNR(B) deposit inflows amounting to $65.4 billion during June 8-August 21, 2026,” the central bank noted. That $65.4 billion figure spans a period extending nearly two months beyond the quarter this week’s 23% decline actually measures. The bulk of the surge happened in July and August, in the following quarter, not in the April-June period the headline decline is reporting on.
Within the April-June quarter itself, FCNR(B) inflows stood at $1.73 billion, essentially flat against $1.77 billion in the same period a year earlier. The scheme’s effects simply had not had time to show up yet in this specific quarterly snapshot.
What is the difference between the RBI’s quarterly deposit bulletin and the swap facility tracker?
Why do RBI deposit figures sometimes appear to conflict with each other?
The RBI publishes two distinct types of data on NRI deposits, tracking different things on different timelines. The quarterly deposit bulletin reports net deposit inflows across FCNR(B), NRE and NRO accounts, compiled from participating banks’ balance sheet data and typically published with a lag of several weeks after each quarter closes, comparing figures on a year-on-year basis for that specific quarter.The swap facility tracker, used for the special concessional scheme launched in June 2026, reports cumulative dollar inflows mobilised under that scheme specifically, updated more frequently and measured from the scheme’s launch date rather than aligned to India’s April-March financial year quarters. Because the two data sets use different time windows, different reporting cadences and different underlying methodologies, a quarterly bulletin figure and a scheme-specific cumulative figure can appear to tell opposite stories about the same period, when in fact they are measuring largely non-overlapping timeframes.
The category breakdown for Q1 FY27
Beyond the FCNR(B) component, the quarter’s overall decline was driven substantially by NRE deposits, which recorded inflows of just $141 million during April-June 2026, sharply down from $1.99 billion in the same period a year earlier. Outstanding NRE deposits stood at $98.76 billion in June 2026, against $98.59 billion in June 2025, essentially unchanged despite the collapse in fresh inflows.
NRO deposits, by contrast, showed a modest improvement, recording inflows of $903 million in April-June 2026 compared with $850 million in the same period a year earlier. Total outstanding NRO deposits rose to $34.26 billion in June 2026, up from $31.99 billion a year earlier.
What the RBI itself said about the trend
The central bank’s own bulletin commentary points toward the same reconciliation this article is making. “Net inflows under non-resident deposits improved during June as compared to the previous month, driven by an increase in Foreign Currency Non-Resident (Banks) deposits on account of policy measures,” the RBI noted, describing an improving trajectory within the quarter itself, consistent with the swap facility having only just begun operating in the quarter’s final weeks.
SBI Research had separately projected in July that FCNR(B) inflows of $13-14 billion could lift aggregate bank deposit growth to around 15% in FY27, a projection that now looks conservative given the $65.4 billion cumulative figure the RBI has since confirmed for the swap window through 21 August.
What this means for NRIs and for understanding future RBI data releases
For NRIs in Australia, the UK, the UAE, the US, Canada and New Zealand tracking India’s deposit environment, the practical lesson from this week’s release is about how to read RBI data going forward, not about any weakening in the underlying deposit drive.
The next quarterly bulletin, covering July-September FY27, is the one that will actually capture the bulk of the swap facility surge within a standard quarterly comparison. Readers should expect that release, when published, to show a dramatically different year-on-year trajectory than this week’s April-June figures, reflecting the same $65.4 billion cumulative inflow this article has already reconciled against the current data.
The FCNR(B) swap facility itself closed to new deposits on 31 August 2026, a month ahead of its original schedule, as covered in our earlier reporting. Deposits booked before that cutoff retain their agreed terms for the full tenor regardless of how the quarterly bulletin figures are subsequently reported.
What NRIs tracking India’s deposit data need to know
Does this 23% decline mean the FCNR(B) deposit scheme was less successful than earlier reported?
No. The scheme’s success is separately confirmed by the RBI’s own swap facility tracker, which recorded $65.4 billion in cumulative FCNR(B) inflows between 8 June and 21 August 2026. This week’s 23% decline reflects the April-June quarterly bulletin, which captures only the scheme’s first three weeks of operation, before the bulk of the surge occurred in July and August.
Which RBI data source should I trust for the most current picture of NRI deposit trends?
Both are accurate for what they measure. The quarterly deposit bulletin is the authoritative source for standard, year-on-year comparable deposit flow data aligned to India’s financial year quarters. The swap facility tracker is the authoritative source for cumulative inflows under the specific June 2026 concessional scheme. For understanding the scheme’s overall impact, the swap facility tracker is the more directly relevant figure.
Will the next RBI quarterly bulletin show a different trend?
Based on the RBI’s own confirmed swap facility data, the July-September FY27 quarterly bulletin, when published, is expected to show a substantially different year-on-year comparison than this week’s release, since that quarter will capture the bulk of the $65.4 billion surge.
Has the FCNR(B) concessional deposit window closed?
Yes. The RBI closed the scheme to new deposits on 31 August 2026, a month ahead of its original 30 September deadline, as covered in our earlier reporting on the scheme’s early closure.
What happened to NRE deposits during this quarter, and should NRIs be concerned?
NRE inflows fell sharply to $141 million in April-June 2026 from $1.99 billion a year earlier, while outstanding NRE deposits remained broadly stable. This decline reflects reduced fresh inflows into NRE accounts specifically during the quarter, separate from the FCNR(B) scheme, and does not indicate any change to the safety or terms of existing NRE deposits.
