Gujarati NRIs sending less money to India, deposits dip by Rs 9,890 cr. Know why

A steady rupee is pushing NRIs to withdraw from banks in Gujarat. After posting growth for five consecutive quarters, NRI deposits in banks, mainly private sector banks, across the state - except Kutch - have reduced by Rs 9,890 crore during the quarter ending December 2014. Rupee largely remained steady in comparison with US dollar during the quarter.

According to the latest data compiled by State Level Bankers' Committee (SLBC), NRI deposits decreased stood at Rs 49,722 crore forming about 10.56% of the total deposits as of December 31, 2014 as against Rs 59,612 crore (13.08%) as of September 30, 2014.

NRI deposits of Axis Bank reduced from Rs 6,550.35 crore in September 2014 to Rs 5.7 crore in December 2014. Similarly, NRI deposits of ICICI bank also reduced by Rs 1,987 crore over September 2014.

"After a sharp fall in 2013-14, rupee remained steady on global cues in later half of 2014-15. This also led to less fresh funds arriving in the state. Also interest rates on Foreign Currency Non Resident (FCNR) accounts remained at comfortable levels. There are chances that some group of NRIs with major deposits might have transferred the funds to their other accounts," said Aspy Bharucha, city-based foreign exchange consultant.