This post was originally published on 12 June 2016 and the content may be outdated.
Remittances by non-resident Indians (NRIs) fell 87 per cent in April due to a slide in oil prices, data released by the Reserve Bank of India (RBI) showed.
Total NRI deposits fell to $302 million in April this year. The deposits stood at $2,406 million in the year-ago period, according to the data.
The biggest fall was registered in the Non-Resident (External) Rupee Account (NR(E)RA) category, which saw inflows decreasing to $203 million in April. It was $2,200 million in the year-ago period.
Introduced in 1970, NR(E)RA is a rupee account and the NRIs can remit money to India from their funds abroad.
For 2015-16, NRI deposits had recorded a growth of 13.5 per cent to $15,977 million, The Hindu has reported.
“Sixty per cent of the India’s remittances come from Gulf countries, which suffered the most due to decline in crude oil prices. So funds from NRIs staying in Gulf must have also fallen,” said Rupa Rege Nitsure, Group Chief Economist, L&T Finance Holdings.
Crude oil prices in April were about $48 per barrel compared with $67 per barrel in the same period of the previous year.
While crude oil prices have hardened to $50 recently, on a year-on-year basis it is still lower.