The deposits by Non-resident Indians into the Indian banking system recorded a new high in November as higher interest rates and falling value of rupee attracted more savers to the country’s banks.

The deposits from NRI’s are expected to increase dramatically as they were able to earn more than triple the returns that can be earned in developed countries. The banks have tripled the interest rates on deposits, a move that will further attract more deposits from the NRI’s.

Indians living abroad have deposited $1.7 billion under various heads in November to take the advantage of earning more rupees against dollar, according to the latest data released by the central bank, the Reserve Bank of India. The figure is the higest ever recorded by the authorities in the country.

Experts say that depreciating rupee will allow NRI’s to earn much higher return in the country compared to their countries of residence and thus will turn savings from abroad as a large component of inflows.

The deregulation of interest rates by the central bank has allowed commercial banks to increase their rates on deposits and attract more deposits from NRI’s.