'NRI deposits drop 98% as oil prices remain low'
15 Oct 2017 11:16 PM IST
New Delhi: Net deposits by non-resident Indians (NRIs) dropped sharply by 98 per cent in April-August this fiscal due to fluctuation in oil prices, industry body Assocham said on Sunday.
The NRI deposit flows have nosedived to $434 million in April-August from $3.84 billion in the same period of previous fiscal, it said in a statement.
"With fading away of the glorious years for the oil-rich countries in the Gulf following crude prices battling to inch up, the NRIs net deposits inflows have seen a huge drop of 98 per cent in the first five months of current financial year over the same period of 2016-17," it said.
Non-resident Indians put money into different accounts like Foreign Currency Non-Resident (Banks), Non-Resident External Rupee Account and Non-Resident (Ordinary) accounts.
The Non-Resident External Rupee Account has witnessed over 50 per cent decline in the deposits, it said.
"While there are various factors responsible for the NRI flows, including the interest rates, but the most plausible at this point of time seems to be economic problems in the Gulf countries, the largest source of NRI remittances, particularly for the low income expatriates," it said.
Remittances have been affected for states like Kerala, Uttar Pradesh and Bihar, the chamber said.
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