NRI Deposits Rise As Funds Flock For Covid Care | Ahmedabad News

Ahmedabad: Non-Resident Indians (NRIs) appear to have sent large sums of money from abroad to protect their families in India from the uncertainties of Covid-19 during the second wave of the pandemic.
NRI deposits with banks across Gujarat increased from Rs 5,950 crore to Rs 81,070 crore during the quarter of April to June 2021-2022 compared to Rs 75,120 crore during the corresponding period from the last fiscal year, show the latest data compiled by state-level bankers. Committee (SLBC).
This is the largest increase in NRI filings seen in the first quarters of the past four fiscal years. “After the lockdown, international flights did not resume immediately. Several NRIs have been stranded in Gujarat due to lack of air connectivity and due to other restrictions related to Covid-19, ”said an SLBC source.
“Faced with a lot of uncertainty, many NRIs have deposited a large sum of money to cover the expenses of their family members in India,” the source added.
Sources in the banking industry also attributed the increase to contingency funds deposited by NRIs in their local accounts.
“With the second wave of Covid-19 infections hitting India, including Gujarat, people living abroad had deposited money at local bank branches as emergency savings so they could help their families and their relatives with a contingency fund, ”said a well- source placed in a public sector bank.
In addition to the new remittances, the bankers also said depositors also received interest income. “NRI depositors have earned interest on past deposits at a rate of at least 5% or more. This is also the reason for the overall increase in NRI filings, ”said MM Bansal, organizer, SLBC – Gujarat.
It can be noted that NRI deposits had eroded during the April-June quarter of the last fiscal year. However, these deposits gradually increased over the following quarters.
Meanwhile, aggregate bank deposits in the state also rose 12.5% ​​to Rs 8.84 lakh crore in the first quarter of the current fiscal year.
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