Putting out data in public domain is vital for policy formulation
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Following the June 5 decision by the Reserve Bank of India (RBI) to mobilise Foreign Currency Non-resident (Bank) [FCNR (B)] deposits almost on a war footing, the media witnessed considerable debates and discussions on the topic.However, lack of an adequate published database, both at macro and micro levels, held back deeper analyses which, if not rectified, will continue to thwart further research on the larger subject of Non-resident Indian (NRI) business (deposits and loans) by banks.The RBI publishes data on NRI business by banks on a monthly, quarterly, half-yearly and annual basis. However, most of the data are covered in the monthly and annual publications, as briefly discussed below:NRI depositsMonthly: The RBI Bulletin gives the outstanding and year-on-year (y-o-y) flow data on NRI deposits, scheme-wise – (a) FCNR (B) Accounts, (b) Non-resident External Rupee Accounts and (c) Non-resident Ordinary Rupee Accounts - in US Dollar (USD). The data relate to the current year’s month/s. It also provides the outstanding amount at March-end of the previous year.The Bulletin contains two more tables: “India’s Overall Balance of Payments” and “Standard Presentation of BoP (Balance of Payment) in India as per BPM6”1 which present quarterly figures on total NRI deposits inflows/outflows and net flows, in USD and Indian Rupee (INR).Annual: (a) “Handbook of Statistics on the Indian Economy” (Handbook) contains time-series data on NRI deposits, scheme-wise, in four tables. Two tables contain outstanding balances, and the other two provide y-o-y inflows/outflows — all in USD and INR and (b) An Appendix Table in “The Report on Trend and Progress of Banking in India” (RTPBI) gives, scheme-wise, the outstanding amount of NRI deposits for the Financial Year (FY) to which the RTPBI relate and the FY preceding it, in INR.NRI loansAn Appendix Table in the RTPBI gives the outstanding amount of loans to non-residents for the FY to which the RTPBI relate and the FY preceding it, in INR.The monthly report “Sectoral Deployment of Bank Credit” clubs loans against FCNR (B) and Non-Resident Non-Repatriable Rupee Deposits with all ‘Advances against fixed deposits.” The same report, with updation, is published in the RTPBI, Handbook and “Statistical Tables Relating to Banks in India (Other Tables).”Banks give very sparse data on NRI business.Given the significance of FCNR (B) deposits, the database must be bolstered. This will not help in policy formulation but also product development for NRIs.Steps to improveFor NRI deposits data must be give on — number of accounts, bank- and scheme-wise number of accounts and balance outstanding, share of top 20 deposits, balance outstanding per country of origin, scheme-wise maturity pattern, cost of NRI deposits and their term deposit rates.Likewise for NRI loans data on Loans to NRIs against their term deposits, scheme-wise: Number of accounts and amount outstanding and on loans outstanding data must be provided for bank-wise distribution, purpose-wise classification, maturity pattern and non-performing loans.Sale of third party products to NRIs: Relevant data on the products sold must also be provided.Banks are privileged to be repositories of humongous data in respect of their customers. Therefore, quite possibly, data on many of the aforementioned parameters are already available in their systems, or with the RBI collected from them through various Returns, statutory and otherwise.The crucial need, however, is their regular ‘dissemination’ in a user-friendly manner in the public domain. RBI and banks should establish standardised systems and procedures for it.The writer is a former Assistant General Manager (Economist), SBI. Views expressed are personalPublished on July 7, 2026
