What is FCNR (B) Fixed Deposit Account?

FCNR (B) stands for Foreign Currency Non-Resident (Bank) Fixed Deposit Account. It is offered by Indian banks to non-resident Indians (NRIs) and persons of Indian origin (PIOs). The account allows you to deposit and maintain your foreign earnings in foreign currencies such as US Dollar (USD), British Pound (GBP), and Euro (EUR) among others.


In the case of FCNR (B) accounts, the principal and interest are freely repatriable, meaning 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 and the interest rates can vary depending on the currency and the tenure.


Learn more about these perks, how to apply for an FCNR account, and other aspects related to it in the following sections:

Features of an FCNR Account


The deposited funds can be of different currencies and will not be converted into Indian Rupees. This enables flexibility in dealings as the deposits can be made as per investors’ preferred choice of currency, under RBI’s list of approved ones.


No taxes are applicable on the returns earned in FCNR accounts according to Indian laws.

Deposit Tenor

Since this is a term account, rather than a savings account, it features a minimum tenor of 1 year and a maximum of 5 years. However, if the residency status of an NRI changes during this period, they will be allowed to keep their FCNR accounts open up to the date of maturity. 


In addition, this will continue to remain at the previously agreed-upon interest rate.

Nomination Facility

NRIs can make use of the provided nomination facility of FCNR accounts. Here, the nominee can either be an NRI or an Indian resident.

Joint Account Holding

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

Benefits of an FCNR Account

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

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

  • Since the funds are held in foreign currency, there are no foreign exchange rate risks as they are transferred in the same currency in which they had been maintained

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

  • Most FCNR accounts do not feature a minimum deposit amount

Documents required to open an FCNR Account

Besides passing the eligibility criteria of being an NRI or a Person of Indian Origin (PIO), you must provide the following documents to open an FCNR 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 are required to produce a copy of their Continuous Discharge Certificate (CDC) with a disembarkment stamp on its last page.

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

  • PIOs must provide a valid PIO/OCI card or a related proof of their PIO status, along with a completed and signed PIO declaration

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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 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: 





Full Form

Non-Resident Ordinary account

Non-Resident External account

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 Account

You will be able to transfer funds from your NRE account based 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 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 account via a third-party account. With this, you may now have a much better idea about FCNR accounts, and the various concepts linked to it. 


This is one of the best ways to go about investing your funds as an NRI due to its guaranteed returns in the applicable foreign currency.  


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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