What is FCNR (B) Fixed Deposit Account?

Indian banks offer the Foreign Currency Non-Resident (FCNR) fixed deposit account to Non-resident Indians (NRIs) and Persons of Indian Origin (PIOs). The account allows you to deposit and maintain your foreign earnings in currencies such as US Dollar (USD), British Pound (GBP), and Euro (EUR), among others.


In the case of FCNR FD accounts, the principal and interest are freely repatriable. This means they can be transferred back to the account holder’s home country without any restrictions. However, these accounts are subject to specific regulations and terms. FCNR fixed deposit interest rates can vary based on the currency and the tenor.

Features and Benefits of Investing in an FCNR Fixed Deposit


Investors can deposit funds in multiple currencies, aligning with RBI's approved list, without converting to Indian Rupees, providing flexibility


FCNR fixed deposit interest rate earnings are not subject to taxes

Deposit Tenor

As a term deposit of 1 to 5 years, the FCNR account allows NRIs to earn stable interest rates, regardless of residency changes

Nomination Facility

NRIs can nominate either an NRI or an Indian resident for their FCNR accounts

Joint Account Holding

An FCNR account can also be opened with two or more joint NRI account holders

Loan against FD

FCNR account holders can receive loans from banks by pledging their stored funds as collateral

Investment Transfer

Interest earned on FCNR accounts, including the principal amount, are transferable

No Exchange Risk

As funds are held in foreign currency, there's no exchange rate risk since they're transferred in the same currency

Repay Debts

Any maturity proceeds earned in an FCNR FD account can be used to repay or settle foreign currency loans availed beyond India

Documents required to open an FCNR FD Account

  • You must provide the following documents to open an FCNR FD account: 
  • Valid passport with a recent passport-size colour photograph of yourself

  • Work/residence permit or residence/employment Visa to confirm your NRI status

  • Proof of address in your resident country

  • Copy of your Form 60 or PAN card  

  • NRI seafarers must provide a Continuous Discharge Certificate (CDC) copy with a disembarkment stamp on the last page 

  • NRI seafarers may also be asked to provide a Foreign Exchange Management Act (FEMA) declaration  

  • PIOs need a valid PIO/OCI card and a signed declaration to prove their PIO status

How to Open an FCNR Account

In order to open an FCNR account, you will have to provide certain documents to your selected bank or NBFC. These may include visa, passport, KYC, and a Foreign Account Tax Compliance Act (FATCA) declaration, along with address and identity proofs. You may also be required to submit your income documents as well. 


Following this, you will be provided with your account details and be intimated about any other follow-up actions.

Difference Between NRE, NRO and FCNR Accounts

NRIs can open three types of different accounts to store their funds in, namely NRO, NRE and FCNR accounts. These can be opened with most authorised banks and come with their own set of features. The differences between them are as follows:


NRO (Non-Resident Ordinary account)

NRE (Non-Resident External account)

FCNR (Foreign Currency Non-Resident account)


Allows you to deposit income earned in India

Allows you to deposit income earned abroad

Allows you to deposit foreign currency earnings in Indian accounts

Currency Involved


Foreign currencies

RBI-approved foreign currencies

Foreign Exchange Risks

No risks involved

Subject to such risks

No risks involved

Withdrawal Currency



Deposited foreign currency


Applicable taxes up to 30% 



Joint Account Opening with Indians


Not allowed

Not allowed

Loan Against Deposits

Available in INR

Available in INR

Available in foreign currencies with some restrictions

Transferring Funds to an FCNR FD Account

You will be able to transfer funds from your NRE account opened in India or any other foreign currency account outside India, to your FCNR account. During the process, this amount will be converted into foreign currency present in the FCNR FD account at the current exchange rates and deposited accordingly. 


However, it is important to remember that you will not be able to fund your FCNR fixed deposit via a third-party account.


The information provided by BFDL herein above is related to the Non-Partnered Banks/ NBFCs and is just for the purpose of information and under no circumstances the information provided hereinabove is intended to be source of advice or recommending any financial investment advice or endorsement of any sort. 

The information including interest rates with regard to fixed deposit, provided on this website is gathered through publicly available sources over the internet and is considered as accurate and reliable to the best of our knowledge. BFDL disclaims any responsibility or liability regarding inaccuracies, omissions, mistakes etc. as well as offers by the Non-Partnered Banks. The use of information set out is entirely at the User’s own risk and User should exercise due care prior taking of any decision, on the basis of information mentioned hereinabove. You are advised to visit/ contact the respective Banks/ NBFCs to verify the information before making any investment or opening an account. Further, BFDL does not undertake any responsibility or liability to update this information. YOU ARE SOLELY RESPONSIBLE FOR ANY LIABILITY OR DAMAGE YOU INCUR THROUGH ACCESS TO OR USE OF THE SITE OR SUCH INFORMATION OR MATERIALS EXCEPT WHERE THE LAWS AND REGULATIONS OF A PARTICULAR JURISDICTION CONCERNING WARRANTIES CANNOT BE WAIVED. Additionally, display of any trademarks, tradenames, logo and other subject matters of intellectual property owners. Display of such Intellectual Property along with the related product information does not imply BFDL’s partnership with the owner of the Intellectual Property of such products. 

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In case I debit my NRE account and open an FCNR Fixed Deposit, would there be any charges?

Booking an FCNR fixed deposit from an NRE account typically incurs no charges at most banks.

Are my FCNR Fixed Deposits funds repatriable?

Yes, the funds in FCNR FDs are easily repatriable. 

Is interest earned on the FCNR account taxable in India?

The interest you earn on your FCNR account is tax-free in India.

What is the tenor for which I can open an FCNR Deposit?

You can open an FCNR deposit for a tenor ranging from 1 year to 5 years.

Can I close my FCNR Deposits prematurely?

Yes, you can close your FCNR Deposits before the due date. If the deposit is closed prematurely before the completion of one year, no interest will be paid.

Can I transfer the FCNR (B) FD closure proceeds to a third-party account?

No. FCNR closure proceeds can only be transferred to an account where the FCNR account holder is a primary applicant.

Can I appoint a mandate holder for my FCNR/RFC/NRE/NRO Fixed Deposits accounts?

Yes, a Non-Resident Indian (NRI) who has an NRE/NRO account can appoint a resident Indian as a mandate holder. The mandate holder can manage the account on behalf of the NRI.

Can I get loans against my FCNR Deposits?

Yes, depositors can apply for loans against their FCNR deposits. The loan amount will be sanctioned depending on the currency of the FCNR.

Can I have a Nominee for my FCNR Deposits?

Yes, you can appoint a nominee for your FCNR FD.

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