NRI deposits in Gujarat passes Rs 50,000-crore mark

During the last three years, NRI deposits in Gujarat increased by 115% on economic vulnerability, depreciation of the rupee, and attractive interest rates offered to NRIs by Indian banks. In year 2014-15, the deposits breached the Rs 50,000-crore mark as it increased to Rs 54,574 crore.

Gujaratis comprise around 33% of the Indian diaspora worldwide. And in term of NRI deposits, Gujarat is among the top five states in the country.

Jayesh Vithalani, an Ahmedabad-based financial consultant told The Economic Times, "The liquidity crisis in Europe and Africa prompted many NRIs to divert their funds to India."
The financial daily also revealed that in the 2013-14, India’s apex bank RBI hiked the Libor rate for Foreign Currency Non-Resident (FCNR) accounts by up to 350 basis points for the period of three to 10 years. Using this FCNR account, an Indian residing abroad can maintain a fixed deposit in foreign currencies and eventually earn regular interest.

According to RBI data, in 2014-15, there was a little over $115 billion (about Rs 7 lakh crore) in NRI accounts in India. And Gujarat accounted for 7.78% of the total amount.

The ET report also mentioned a latest State Level Bankers' Committee (SLBC) data which showed that total bank deposits in Gujarat was Rs 4.9 lakh crore as of March 2015. Out of this amount, 11.13% or Rs 54,574 crore belong to NRIs. (Image: The Economic Times)