FCNR

India's bank deposits are shifting toward non-household funds, with rising term deposits and falling CASA share, while private banks steadily gain deposit share

As their status changes from NRI to RNOR and then to ROR, both their tax and disclosure obligations change

SBI rolled out a 9x leverage facility under RBI's FCNR(B) scheme as India's forex reserves fell sharply on lower gold valuations

FCNR(B) deposits have lost ground in NRI portfolios over the past decade, prompting the RBI to ease rate restrictions to attract fresh inflows

Private-sector lender increases FCNR(B) deposit rates following RBI's forex swap facility and temporary removal of the interest rate ceiling on eligible deposits

Banks have been asked to furnish daily details of FCNR(B) deposits, ECBs and OFCBs mobilised under the RBI's concessional swap facilities announced on June 8

Banks, especially smaller lenders, may raise FCNR(B) deposit rates further after RBI temporarily removed the interest-rate ceiling on select maturities

The central bank has temporarily withdrawn interest rate ceilings on select FCNR(B) and NRE deposits, giving banks greater flexibility to attract NRI funds

The state-owned lender has increased rates across key maturity buckets, offering a peak return of 6.25 per cent on five-year FCNR(B) deposits

Indian banks are targeting overseas nationals with high-yield dollar deposits to attract over $50 billion and bolster forex reserves amid rupee pressure

Brokerages estimate leveraged FCNR(B) deposits could generate annual returns of up to 27 per cent for NRIs while helping banks attract $30-60 billion in fresh foreign currency inflows

Lenders are raising FCNR(B) deposit rates following the RBI's special swap window, with some private banks offering rates above 6 per cent to attract NRI inflows

Major lenders have increased FCNR(B) deposit rates after the RBI offered to absorb hedging costs, a move aimed at attracting foreign currency inflows from NRIs

Inflows into NRI deposit schemes declined sharply during April-November 2025, dragged down by a steep fall in FCNR(B) deposits, even as NRE and NRO accounts recorded modest growth, RBI data showed

NRI deposit inflows moderated to $8.3 billion in April-October FY26, mainly due to a sharp drop in FCNR (B) inflows, even as NRE deposits recorded higher inflows, RBI data showed

Outstanding deposits decline in Feb 2023 over Jan 2023

In July, the RBI took steps to enhance fresh inflows into NRI deposit accounts

NRE deposits were at $100.8 billion in March

Outstanding NRI deposits declined to $134.68 billion at the end of August 2022 from $141.52 billion a year ago

State Bank of India (SBI) has reduced the interest rate on savings accounts by a marginal 5 basis points to 2.70 per cent effective from October 15. The new saving rates are applicable on balances of less than Rs 10 crore, on which the bank earlier offered 2.75 per cent per annum interest. The lowering of rates on savings accounts by SBI comes at a time when the peer lenders have been raising deposit rates to mobilise funds. However, on saving account balances of Rs 10 crore and above, SBI has increased the deposit rates to 3 per cent per annum from 2.75 per cent earlier. Bank of Baroda on the other hand hiked the interest rates on foreign currency non-resident (FCNR) deposits across various currencies and maturity periods by up to 135 basis points. The new deposit rates came to effect from October 16, 2022 and will remain in force till November 15, 2022, Bank of Baroda said in a release on Monday. The revised rates are applicable on fresh and existing FCNR deposits which are ren