In March, non-resident Indians (NRIs) made net withdrawals of nearly $2 billion from their domestic bank accounts, as reported by the Reserve Bank of India (RBI). The total outstanding NRI deposits decreased to $165.65 billion from $167.58 billion the previous month. This decline is attributed to the ongoing geopolitical tensions, particularly related to the conflict in Iran, which has raised concerns among NRIs about their financial stability. The overall NRI deposit inflows have also contracted, dropping to $14.41 billion for the fiscal year 2025-26, down from $16.16 billion in the previous year. Senior bank officials, including PR Seshadri, managing director of South Indian Bank, indicated that if the conflict in West Asia persists, it could have a more significant long-term impact on NRI deposits. The withdrawals were mainly observed in non-resident external rupee accounts (NRERA) and non-resident ordinary (NRO) accounts, while foreign currency non-resident bank (FCNR(B)) accounts remained stable. As of March, outstanding NRERA deposits were $98.56 billion, a decrease from $99.77 billion a year earlier.