Foreign Currency Non-Resident (Bank)
Economy · Thursday, 11 June 2026
RBI introduces a new framework for FCNR(B) deposits to attract overseas funding.
Quick highlights
- FCNR(B) deposits allow NRIs to retain savings in foreign currencies.
- Tax-free returns for depositors enhance attractiveness.
- Exemptions from CRR and SLR improve lending margins.
Context
RBI introduces a special dispensation for FCNR(B) deposits.
Key Facts
The framework aims to attract low-cost overseas funding.
Significance
Stabilizes the capital account and enhances foreign investment.
Challenges / Way Forward
Ensuring competitive interest rates is crucial.
Exam Angle
Relevant for GS Paper III - Financial Markets.
Remember this
- FCNR(B) deposits are tax-free.
- Deposits exempt from CRR and SLR.
- Interest rates linked to international benchmarks.