NRI deposits double during April-Nov, 2012

Continuing rupee fall and higher interest rate have seen NRI deposits nearly doubling in the first eight months of 2012-13 to $11.24 billion from $6.39 billion a year ago, according to the Reserve Bank data.

However, the non-resident (ordinary) rupee accounts and foreign currency non-resident accounts saw an outflow this year as against an inflow last year, according to the central bank data.

It can be noted that, following the rupee fall in December 2011, the RBI had deregulated interest rates on NRI deposits, forcing banks to hike rates of such deposits sharply, which now hover over 10 per cent, while banks were lowering rates for domestic deposits.