Non Resident Indians usually hold their savings in the dollar denominated accounts, but the recent trend in the past decade has proved that NRIs now have more confidence in their country. They are increasingly willing to hold their savings in the rupee denominated accounts, including non-repatriable accounts.
RBI figures show that there is a dramatic increase in the NRI deposit base from $10 billion from $13.7 billion in 1990 to $23.5 billion in 2000. If you also take into consideration the $10 billion raised in 1997 and 2000 through Resurgent India Bonds (RIBs) and India Millennium Deposits Scheme (IMDs), the NRI deposit actually doubled to $20 billion.
Thus while teh dollar denominated FCNR (B) account continues to be popular, the other two rupee accounts, including the non-repatriable account have been equally buoyant.
While 1991 started with an outstanding of $13.7 billion, of which $10.1 billion was in the FCNR (A) account and $3.6 billion in the NR (E) RA account, the year 2000 closed with outstanding balances amounting to $9 billion in the FCNR (B) account, $6.9 billion in the NR (E) RA account and $7 billion in the NR (RD) RD account. |
|
| Account |
1991($billion) |
2000($billion) |
| FCNR |
10.1 |
9 |
| NRE |
3.6 |
13.9 |
|
|
 |
| |
|
|
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