NRI deposits drop 98% as oil prices remain low: Assocham
The NRI deposit flows have nosedived to USD 434 million in April-August from USD 3.84 billion in the same period of previous fiscal, it said in a statement.
Net deposits by Non-Resident Indians (NRIs) dropped sharply by 98 percent in April-August this fiscal due to fluctuation in oil prices, industry body Assocham said.
The NRI deposit flows have nosedived to USD 434 million in April-August from USD 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 percent in the first five months of current financial year over the same period of 2016-17," it said.
NRIs 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 percent 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 in 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.
