The economic crisis in the United States and Britain is reportedly forcing many NRIs to dip into their savings and assets back home. Due to job losses, default of mortgage payments and losses in their businesses, some NRIs are cashing their foreign currency demand deposits in India to stay afloat.

According to a World Bank economist and an expert on immigrant remittances, Dilip Ratha, foreign currency deposits in India have declined by 12 percent between January and December 2008 from $41.2 billion to $36.1 billion.