Ever since the government announced that it would bear the hedging cost on Foreign Currency Non-Resident- FCNR (B)- deposits till September 30, 2026, there is renewed interest in FCNR (B) investments. As a result of the government’s announcement, many banks reciprocated with increasing interest rates on their FCNR (B) schemes.
An FCNR (B) allows deposits in a foreign currency such as US dollar, British Pound, Euro, Canadian dollar, etc. Non-Resident Indians (NRIs), Persons of Indian Origin (POIs) and Overseas Citizens of India (OCIs) can deposit and withdraw their amounts in an FCNR (B) in India in a foreign currency.
