Foreign Currency Non-Resident (Bank) or FNCR (B) deposits have been attracting huge US dollar investments ever since the government announced that it would bear the hedging cost on 3–5-year deposits. Major banks have raised their FCNR (B) fixed deposit (FD) rates on 3-5-year tenures, and banks like HSBC Bank are even offering a whopping 19X leverage on these deposits. This has led to a huge influx of US dollars investments into FCNR (B) deposits.
According to a Reserve Bank of India (RBI) update in early August, as of July 31, 2026, the value of FCNR (B) deposits in India reached USD 36,725 million, marking a staggering 111% increase from the RBI’s previous update of USD 17,406 million on July 20, 2026. Many investors might think that those putting money in FCNR (B) are enjoying a fantastic opportunity with the government bearing the hedging costs and banks offering substantial leverage.
