The Foreign Currency Non-Resident (Bank) — FCNR(B) Deposits:
The Reserve Bank of India (RBI) advanced the deadline for fresh Foreign Currency Non-Resident (Bank) [FCNR(B)] deposits to qualify for its special USD–INR forex swap window to August 31, 2026.An FCNR(B) deposit is a term/fixed deposit account maintained in approved foreign currencies by Non-Resident Indians (NRIs) and Overseas Citizens of India (OCIs) with authorized banks in India.Unlike rupee-denominated NRI accounts (such as NRE or NRO accounts), the funds are held entirely in foreign currency, eliminating foreign exchange conversion risk for the depositor.The FCNR scheme was originally introduced in 1975 (where the exchange risk was borne by the RBI/Government).To eliminate central fiscal liabilities, the revised FCNR(B) Scheme was launched in May 1993, under which commercial banks themselves maintain and manage foreign currency exchange exposure and liabilities. Governed under the Foreign Exchange Management Act (FEMA), 1999 and RBI Master Directions on Non-Resident Deposits.Aim is to attract stable, long-term foreign currency capital into the Indian banking system, reinforce India’s external Balance of Payments (BoP), bolster gross foreign exchange reserves, and provide non-resident Indians with a secure, tax-free, and exchange-risk-free investment avenue in India.
