In the first eleven months of the financial year 2012-13, NRI deposits in the banking system rose by 37 per cent at $13.379 billion against $9.733 billion in the year-ago period.
The NRI deposit accretion was only in the non-resident (external) rupee account or NRE account. In the reporting period, NRE deposits increased by a whopping 161 per cent at $15.271 billion against $5.854 billion in the year-ago period.
Non-resident Indians (NRIs) are keeping faith in NRE deposits because they fetch handsome returns for instance, State Bank of India is offering 8.75 per cent interest on NRE deposits of 1-10 years.
The other reason for NRIs to park money in NRE deposits is that they may be taking a view that the rupee will appreciate down the line, there enabling NRIs to make gains at the time when the deposit matures, said a senior public sector bank official.