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Global Indians, attracted by the depreciation of rupee against the dollar and greater domestic interest rates, deposited increased amounts in India. Non-resident Indians (NRI) deposits jumped 48% in the first four months of the financial year. The Reserve Bank of India may take steps to contain sharp currency movements.

According to the RBI September Bulletin, deposits from NRI rose to $6.97 billion in April-July compared to 4.71 billion a year earlier, while outstanding NRI deposits crossed $120 billion.

Money from NRIs can be parked in either Foreign Currency Non-Resident (Bank) or FCNR(B) deposits, or Non-Resident (External) Rupee Account or NR(E)RA deposits.

As the rupee depreciates, NR(E)RA deposits tend to raise. It is a benefit to depositors in case the local currency appreciates during repatriation. Moreover, higher interest rated is on these deposits compared to international rates besides being more on par with domestic rates.

UAE Exchange CEO Promoth Manghat said, "The sharp depreciation of the Indian rupee gave opportune money senders a window to send more money home. This, in turn, led to a surge in NRI deposits.”

"With the Indian rupee depreciating recently to its lowest in two years, NRI remittances grew by 15-18 per cent over this time frame. This, coupled with Indian deposits providing better interest rates, has formed a conducive environment for NRIs to repatriate larger sums of money."

-Sumana