Foreign Currency Non-Resident (Bank):
The Reserve Bank of India (RBI) introduced a special dispensation allowing commercial banks to mobilize fresh three- to five-year Foreign Currency Non-Resident (Bank), or FCNR(B).FCNR(B) deposits are specialized, fixed-term foreign currency bank accounts opened in India by Non-Resident Indians (NRIs), Overseas Citizens of India (OCIs), and Persons of Indian Origin (PIOs).Unlike standard NRI accounts that automatically convert foreign currency into Indian Rupees, FCNR(B) deposits allow overseas Indians to fully retain their savings in global currencies.The aim of the FCNR(B) scheme is to provide Indian banks with a stable, large-scale source of low-cost overseas funding to shore up the country’s capital account.For depositors, it provides an investment route to earn tax-free returns in India without taking on the risk of local currency depreciation.
