Foreign Currency Non-Resident (Bank)- FCNR (B)- and Non-Resident External (NRE) deposits are two key investment options for Non-resident Indians (NRIs), Overseas Citizens of India (OCIs) and Persons of Indian Origin (PIOs), looking to invest in India and earn interest. Both options come with tax benefits for investors, and the maturity amount can be fully repatriated. While they have several similarities, there are also some notable differences.
FCNR (B) allows investors to invest and withdraw in foreign currencies, including the US dollar, whereas NRE deposits and withdrawals are conducted in Indian rupee.
