FCNR(B) Deposits
Mechanism and Purpose
FCNR(B), or Foreign Currency Non-Resident (Bank) deposit, is a term-deposit account that Non-Resident Indians (NRIs) and Persons of Indian Origin (PIOs) can hold in designated foreign currencies (such as USD, GBP, EUR, JPY, AUD, CAD) with Indian banks. Because the deposit and its returns are held in foreign currency, depositors bear no exchange-rate risk, making it an attractive route for NRIs to earn returns without rupee depreciation risk, and a key channel through which the RBI can attract dollar inflows during periods of currency pressure.
- Principal and interest are fully repatriable and tax-free in India, similar to Non-Resident External (NRE) accounts
- In early June 2026, the RBI announced a special swap facility for fresh FCNR(B) deposits with three-to-five-year tenors, opening the window on June 8, 2026, and absorbing part of the associated hedging cost so banks could offer higher rates to depositors
- A mandatory one-year lock-in applies to deposits raised under this special scheme — banks cannot permit premature withdrawal during the first year
● Tracked since June 06, 2026 · last seen August 25, 2026 · updates as the daily brief publishes
See it in today’s brief.
Daily current affairs with every static concept explained in place.
Read the daily brief