Ahmedabad: Gujarat’s NRI deposit base has hit a record high of Rs 1.18 lakh crore, even as fresh overseas deposits slowed across India amid changing global interest rates and narrowing returns on foreign currency deposits.Data from State Level Bankers’ Committee, Gujarat, show that outstanding NRI deposits in the state rose to Rs 1.17 lakh crore at the end of FY26, compared with Rs 1.09 lakh crore a year earlier, registering an 8.15% increase.The state’s NRI deposit pool has expanded nearly 47% since FY20, when it stood at Rs 80,109.21 crore. However, the latest growth was slower than the 18.16% rise recorded in FY25.Bankers attributed the continued growth to Gujarat’s large overseas diaspora, steady remittance flows, and NRIs’ preference for keeping a part of their savings in Indian banks.“A weaker rupee has also increased the rupee value of dollar remittances, making deposits and investments in India more attractive. Many NRIs are also investing in Gujarat’s real estate sector, where funds are parked and later withdrawn. Confidence in the Indian economy remains strong,” said a banking sector source.
Inflows
However, bankers said exchange-rate movements alone did not explain the rise. Despite the rupee weakening by 10.57% in FY26, NRI deposits grew 8.15%, compared with an 18.16% increase in FY25 when the rupee depreciated only 2.67%. “This indicates that withdrawals from Indian banks also increased for various purposes,” the source added.The trend mirrors a slowdown in fresh NRI deposit mobilisation across India. Reserve Bank of India data indicate that inflows into NRI deposit schemes moderated in FY26, particularly in foreign currency non-resident (bank), or FCNR(B), deposits, as the interest-rate gap between India and overseas markets narrowed.To encourage overseas deposits, the RBI recently eased interest-rate ceilings on FCNR(B) and non-resident external (NRE) deposits, giving banks greater flexibility to offer higher returns.Industry observers said Gujarat continues to remain a preferred destination for NRI savings due to its strong overseas community, investment opportunities and long-standing banking relationships with the diaspora.
