FCNR(B) deposit rules: currency, tenure and withdrawal
NRI Dash Research Team · Last reviewed: 2026-06-28
FCNR(B) deposit rules are the regulatory framework governing India's Foreign Currency Non-Resident (Bank) scheme, which allows NRIs to hold term deposits denominated in a foreign currency and eliminate rupee exchange risk entirely.
It is a term deposit, not a wallet
FCNR(B) holds a fixed deposit in a permitted foreign currency. Compare bank-supported currencies, maturity rules and the currency of your future spending.
Key points
- Foreign currency — Principal and interest remain in the deposit's designated currency.
- Repatriable — Eligible FCNR(B) balances are generally repatriable.
- Break rules — Premature closure can reduce or eliminate interest under bank terms.
What to compare before booking
Check the permitted currency, minimum deposit, tenure, interest schedule and premature-withdrawal rule. A high rate in a currency you will later convert can still introduce a new exchange-rate exposure.
Ask how the bank handles maturity if your residential status changes before the deposit ends.
Useful decision questions
Will the maturity proceeds be spent in the same currency?
What exchange spread applies when funding or closing the deposit?
Does the bank pay any interest if the deposit is closed before its minimum period?
Frequently asked questions
Can FCNR(B) be opened in Indian rupees?
No. It is denominated in permitted foreign currencies. NRE term deposits are denominated in INR.
Can FCNR(B) be a recurring deposit?
RBI guidance states recurring deposits are not accepted under the FCNR(B) scheme.
Does FCNR(B) guarantee a better return?
No. Compare interest, currency, fees, tenure and your eventual spending currency.