• About
  • Advertise
  • Contact
  • Login
NRI Affairs
Youtube Channel
  • News
  • Video
  • Opinion
  • Culture
  • Visa
  • Other
No Result
View All Result
  • News
  • Video
  • Opinion
  • Culture
  • Visa
  • Other
No Result
View All Result
NRI Affairs
No Result
View All Result
Home News

NRI deposits fall 62% between April-November 2021

NRI Affairs News Desk by NRI Affairs News Desk
February 7, 2022
in News
Reading Time: 3 mins read
A A
0
NRI deposits fall 62% between April-November 2021

Photo: Pixabay

151
SHARES
1.4k
VIEWS
Share on FacebookShare on Twitter
Advertisements

Reserve Bank data paints grim picture of NRI investment as deposits dwindle.

According to latest Reserve Bank Data, net inflows to various NRI deposit schemes plunged to $2.6 billion during April-November in 2021, from $ 7 billion in the same period a year before.

Non-resident external (NRE) accounts hold more than two-thirds, or 72% of NRI deposits. These, always regarded as the Indian diaspora’s safe haven deposits, which normally fetch high returns, fell 62% in the first eight months of the fiscal year. Returns dwindled as interest fell and even the risk-reward ratio took an adverse turn.

Diminishing returns are a result of the Reserve Bank signalling lower rates, making bank deposits more and more unappealing.

Speaking to the Economic Times, Ashutosh Khajuria, executive director, Federal Bank, said, “With falling returns, there has been a general slowdown in term deposits as an investment avenue.”

Advertisements

“Other alternatives avenues like mutual funds and stocks were more attractive for the NRI,” he said.

Follow NRI Affairs on Facebook and Twitter for latest updates. Support us on Patreon.

Domestic deposits rose 5.5% in Indian banks during April to November last year compared to 7.5% in the same time period a year earlier. It is possible that the pandemic-induced lockdown in 2020-2021 had resulted in depositors seeking refuge in safety rather than in risky ventures, and this had eventually resulted in surge in deposits. However, with some return to normalcy after the second wave of COVID-19, there has been a slowdown in deposits while other alternative instruments have also come into the picture.

During the pandemic, many NRIs were facing job losses, especially in the Middle East, resulting in lesser surplus and consequently lesser deposits. People had to fend for daily life, prioritising day-to-day maintenance rather than think of long-term investments. This was evident in figures that showed money kept in non-resident ordinary (NRO) deposits, that are meant for daily expenditure and not for investment, doubled to $2 billion during this period.

“The Indian diaspora had to deal with a lot of disruptions” said Khajuria. “Money parked in NRI deposits are essentially savings after taking care of maintenance of family”. In the short run too, things don’t look too attractive for the NRI investor as yields in more advanced markets surge and depreciation of local currency rise. NRE deposits may suffer again as they continue to receive lesser returns from interests and with currency downswing, there will not be much to take back home.

Over 70,000 Punjabis moved to Gulf countries for jobs in last 5 years
Share60Tweet38Send
NRI Affairs News Desk

NRI Affairs News Desk

Related Posts

Indian diaspora tensions increase during Federation Square's pro-Sikh vote
News

Indian diaspora tensions increase during Federation Square’s pro-Sikh vote

January 30, 2023
Sania Mirza ends her Grand Slam career in Melbourne
News

Sania Mirza ends her Grand Slam career in Melbourne

January 28, 2023
New UK Graduate Visa rules can severely impact Indian Students
News

New UK Graduate Visa rules can severely impact Indian Students

January 28, 2023
Next Post
Australia Travel Exemption

'Hope this marks the end of the mission for this group': People welcome opening of Australian international borders

ICC T20 World Cup

T20 World Cup tickets for the Indian team’s matches gone in pre-sale

Important update for Australians in India

Australia-India Free Trade Agreement: India's conditional offer to cut duty on Australian wines

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Recommended

Australia restores travel restrictions to global settings, relaxes India’s ‘high risk’ status

Australia restores travel restrictions to global settings, relaxes India’s ‘high risk’ status

1 year ago
Australia Visa Victoria offers new pathway to PR

Australian Visa: Victoria offers a new pathway to PR

1 year ago
Vishal Jood

Federal Minister Alex Hawke faces flak over Vishal Jood statement

1 year ago
Madhubala’s sister, 96, allegedly thrown out of New Zealand home, put on flight to Mumbai

Madhubala’s sister, 96, allegedly thrown out of New Zealand home, put on flight to Mumbai

12 months ago

Categories

  • Literature
  • Multimedia
  • News
  • nriaffairs
  • Other
  • People
  • Top Stories
  • Uncategorized
  • Views
  • Visa

Topics

Air India Australia california Canada caste CECA COVID COVID-19 cricket ECTA Europe free trade FTA Geeta Germany Hindu Human Rights immigration India india-australia Indian Indian-origin Indian Students Khalistan London Melbourne Migration Modi Muslim New Zealand NRI NSW oci quarantine Singapore Sydney travel UAE uk Ukraine US USA Victoria visa women
NRI Affairs

© 2021 NRI Affairs.

Navigate Site

  • About
  • Advertise
  • Contact

Follow Us

No Result
View All Result
  • News
  • Video
  • Opinion
  • Culture
  • Visa
  • Other

© 2021 NRI Affairs.

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In
We use cookies on our website to give you the most relevant experience by remembering your preferences and repeat visits. By clicking “Accept All”, you consent to the use of ALL the cookies. However, you may visit "Cookie Settings" to provide a controlled consent.
Cookie SettingsAccept All
Manage consent

Privacy Overview

This website uses cookies to improve your experience while you navigate through the website. Out of these, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may affect your browsing experience.
Necessary
Always Enabled
Necessary cookies are absolutely essential for the website to function properly. These cookies ensure basic functionalities and security features of the website, anonymously.
CookieDurationDescription
cookielawinfo-checkbox-analytics11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Analytics".
cookielawinfo-checkbox-functional11 monthsThe cookie is set by GDPR cookie consent to record the user consent for the cookies in the category "Functional".
cookielawinfo-checkbox-necessary11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookies is used to store the user consent for the cookies in the category "Necessary".
cookielawinfo-checkbox-others11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Other.
cookielawinfo-checkbox-performance11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Performance".
viewed_cookie_policy11 monthsThe cookie is set by the GDPR Cookie Consent plugin and is used to store whether or not user has consented to the use of cookies. It does not store any personal data.
Functional
Functional cookies help to perform certain functionalities like sharing the content of the website on social media platforms, collect feedbacks, and other third-party features.
Performance
Performance cookies are used to understand and analyze the key performance indexes of the website which helps in delivering a better user experience for the visitors.
Analytics
Analytical cookies are used to understand how visitors interact with the website. These cookies help provide information on metrics the number of visitors, bounce rate, traffic source, etc.
Advertisement
Advertisement cookies are used to provide visitors with relevant ads and marketing campaigns. These cookies track visitors across websites and collect information to provide customized ads.
Others
Other uncategorized cookies are those that are being analyzed and have not been classified into a category as yet.
SAVE & ACCEPT