What are the best FCNR rates?

The FCNR deposit rates in India by top banks like YES Bank, Bank of Baroda, Canara, give up to 5.50% p.a. to 6.60% p.a. on USD currency.

What are the disadvantages of an FCNR account?

The main downside of an FCNR Account is that your money is locked in for 1 to 5 years. If you withdraw it before completing one full year, you won't earn any interest.

Which banks offers the best FCNR deposits?

Few banks which offers the best FCNR rates in India are: YES Bank FCNR Rates - up to 6.70% on GBP Canara Bank FCNR Rates - up to 6.50% on USD Bank of Maharashtra FCNR Rates - up to 5.20% on USD DCB Bank FCNR Rates - up to 5.10% on USD Bank of Baroda - up to 5.00% on USD

What is an FCNR deposit in India?

An FCNR (Foreign Currency Non-Resident) deposit is a fixed-term deposit held in India for eligible non-residents, including NRIs, PIOs, and OCIs. It lets you save in foreign currencies like USD, GBP, EUR, CAD, AUD, or JPY without converting your money into Indian Rupees, shielding your savings from rupee fluctuations

Is an FCNR account better than an NRE account?

FCNR accounts are preferable for currency protection and tax-free interest on foreign currency deposits. In contrast, NRE accounts offer higher flexibility, but funds are maintained in Indian Rupees, exposing them to exchange rate risks.

Are FCNR Deposits taxable?

Customers holding FCNR Deposits receive complete tax exemption on the interest in India under Section 11, read with Schedule IV, Serial Number 14, of the Income-tax Act, 2025 (earlier Section 10(15)(iv)(fa)), up to the date of maturity or conversion into a resident account.

What is the difference between FCNR (A) and FCNR (B) deposits?

Here is the clear difference between FCNR (A) vs. FCNR (B): FCNR (A) (1975–1993): Offered an exchange rate guarantee backed by the government, but was eventually replaced because it became too costly for the government to maintain. FCNR (B) (1993–Present): Shifted the exchange rate risk to individual banks. Today, all active FCNR deposits follow this model, giving non-residents a tax-free, fully transferable way to earn interest in major foreign currencies.

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FCNR Deposit Rates

FCNR deposit rates in India currently range from about 3% to 4.5%, depending on the bank and tenure. Rates have fallen back to previous levels since the Reserve Bank of India (RBI) closed its special concessional USD-INR swap facility for new FCNR deposits on August 31, 2026, which had helped banks offer higher returns.

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Best FCNR Rates in India

FCNR FD rates offer NRIs an opportunity to earn among the highest FCNR rates on deposits in foreign currencies while avoiding currency conversion risks. Here’s a look at the FCNR deposit rates of top leading banks in India:

State Bank of India FCNR Fixed Deposit Rates

State Bank of India offers competitive FCNR(B) FD rates for NRIs in multiple foreign currencies (last verified in November 2026):

CURRENCY	USD	GBP	CAD	AUD	EUR	JPY
1 year - less than 2 years	4.40%	4.00%	3.08%	4.25%	3.00%	0.65%
2 years - less than 3 years	3.55%	3.95%	2.83%	4.15%	1.50%	0.65%
3 years - less than 4 years	3.35%	3.00%	2.58%	4.05%	1.50%	0.65%
4 years - less than 5 years	2.95%	2.90%	2.63%	3.95%	1.50%	0.55%
5 years only	3.05%	2.80%	2.68%	3.85%	1.50%	0.55%

*SBI FCNR Deposit Rates as of October 2026

HDFC Bank FCNR Deposit Interest Rates

HDFC Bank offers FCNR(B) deposit options with interest rates varying by currency and tenure (last verified in November 2026):

Period	GBP	USD	EURO	JPY	AUD	CAD	SGD
1 Year- less than 2 years	3.00%	3.35%	1.50%	0.01%	3.45%	1.35%	0.25%
2 years - less than 3 years	3.00%	3.35%	1.45%	N/A	3.30%	1.50%	0.40%
3 years to less than 4 years	3.00%	3.35%	1.40%	N/A	3.30%	1.60%	0.60%
4 years to less than 5 years	3.00%	3.10%	1.35%	N/A	3.25%	1.55%	0.75%
5 years only	3.00%	3.10%	1.35%	N/A	3.25%	1.55%	0.75%

*HDFC FCNR interest rates w.e.f. 1st October, 2026

ICICI Bank FCNR Rates

ICICI Bank offers interest on FCNR(B) deposits for NRIs, with rates varying by currency and tenure(last verified in November 2026):

Tenure	USD	GBP	CAD	SGD	AUD
12 months to < 24 months	3.75%	3.80%	2.25%	1.15%	4.25%
>= 24 months to < 36 months	3.50%	3.65%	2.20%	1.00%	3.90%
>= 36 months to < 48 months	3.25%	-	-	-	-
>= 48 months to < 60 months	3.25%	-	-	-	-
60 months	3.25%	-	-	-	-

ICICI FCNR interest rates w.e.f. from September 01st, 2026

Axis Bank FCNR Rates

The FCNR(B) FD rates at Axis Bank vary by currency and tenure, giving NRIs a flexible investment option (last verified in November 2026):

Maturity Period	USD		GBP	EURO	JPY	CAD	AUD	HKD	SGD
Maturity Period	Below 1 million	1 million and above	GBP	EURO	JPY	CAD	AUD	HKD	SGD
1 year < 2 years	4.50%	4.60%	4.25%	2.75%	0.40%	2.75%	4.40%	0.50%	1.90%
2 years < 3 years	4.00%	4.00%	4.25%	2.25%	0.40%	2.50%	4.20%	0.50%	1.45%
3 years < 4 years	4.00%	4.00%	3.65%	2.00%	0.40%	2.25%	3.75%	0.50%	0.50%
4 years < 5 years	3.75%	3.75%	3.50%	1.75%	0.30%	2.25%	3.45%	0.50%	0.50%
5 years	3.75%	3.75%	3.30%	1.70%	0.30%	2.25%	3.35%	0.50%	0.50%

*Axis Bank FCNR Rates w.e.f. 05th October 2026

Bank of Baroda FCNR Rates

The revised Bank of Baroda FCNR(B) interest rates for NRI customers are given below (last verified in November 2026):

Maturity Period	USD (< USD 0.2 Mio)	USD (USD 0.2 Mio to 1 Mio)	USD (> USD 1 Mio to 5 Mio)	USD (> USD 5 Mio)	GBP	EUR	AUD	CAD
One Year and above but less than Two Years	5.00%	5.00%	5.00%	5.00%	4.25%	2.75%	3.75%	3.25%
Two Years and above but less than Three Years	3.55%	3.55%	3.55%	3.55%	2.35%	1.50%	3.50%	3.00%
Three Years and above but less than Four Years	3.35%	3.35%	3.35%	3.35%	2.45%	1.50%	3.00%	2.75%
Four Years and above but less than Five Years	2.95%	2.95%	2.95%	2.95%	2.45%	1.50%	3.00%	2.80%
5 Years Only	3.05%	3.05%	3.05%	3.05%	2.45%	1.50%	3.00%	2.85%

*Bank of Baroda FCNR Deposit Rates w.e.f. 13 July, 2026

IDFC FIRST Bank FCNR Rates

IDFC FIRST Bank provides FCNR(B) deposits in various currencies with adjustable tenure and interest rates (last verified in November 2026):

Period	USD		GBP	EUR	AUD	SGD
Period	Up to 1 Million	Above 1 Million	GBP	EUR	AUD	SGD
1 Yr < 15 Months	4.50%	4.00%	4.25%	2.55%	4.00%	1.90%
15 Months < 2 Yrs	4.50%	4.00%	4.00%	1.25%	3.85%	1.65%
2 Yrs to < 3 Yrs	4.25%	4.00%	NA	NA	NA	NA
3 Yrs to < 4 Yrs	4.25%	4.00%	NA	NA	NA	NA
4 Yrs to < 5 Yrs	4.75%	4.00%	NA	NA	NA	NA
5 Yrs only	4.75%	4.00%	NA	NA	NA	NA

*IDFC First Bank FCNR Deposit Rates w.e.f. 1st October, 2026

Canara Bank FCNR Rates

Canara Bank allows NRIs to earn interest on FCNR(B) deposits, with rates varying by tenure and currency (last verified in November 2026):

PERIOD OF DEPOSIT	USD <100000	USD>=100000	USD>=1500000	GBP	EURO	CAD	AUD
1 year to less than 2 years	4.95%	5.00%	5.05%	4.20%	2.70%	3.20%	3.70%
2 years to less than 3 years	3.90%	3.90%	3.90%	3.00%	2.00%	3.25%	3.50%
3 years to less than 4 years	6.50%	6.50%	3.70%	5.25%	5.00%	3.00%	3.00%
4 years to less than 5 years	6.50%	6.50%	3.50%	5.50%	5.00%	3.00%	3.00%
5 years	6.50%	6.50%	3.50%	5.50%	5.00%	3.00%	3.00%

*Canara Bank FCNR Rates w.e.f. 07th October 2026

Yes Bank FCNR Rates

Yes Bank offers attractive FCNR(B) deposits for all those NRIs who want to invest in various currencies and tenures (last verified in November 2026):

Period	USD (< 1 Mn)	GBP	EURO	JPY	CAD	AUD	HKD	SGD
1 year to less than 2 years	4.50%	4.40%	2.75%	0.40%	2.75%	4.40%	0.50%	1.90%
2 years to less than 3 years	4.00%	4.40%	2.25%	0.40%	2.50%	4.20%	0.50%	1.45%
3 years to less than 4 years	6.50%	6.50%	4.65%	0.40%	2.25%	3.75%	0.50%	0.50%
4 years to less than 5 years	6.55%	6.55%	4.70%	0.30%	2.25%	3.45%	0.50%	0.50%
5 years only	6.60%	6.70%	4.75%	0.30%	2.25%	3.35%	0.50%	0.50%

Yes Bank FCNR Rates effective from 8th July 2026

Kotak Mahindra Bank FCNR Rates

Kotak Mahindra Bank provides a range of FCNR(B) deposit rates across various currencies and tenures for NRIs (last verified in November 2026):

FCNR (B) Deposit	USD (< 0.5 mio)	USD (>= 0.5 mio)	GBP	EURO	AUD	SGD
>= 1 Year - Less than 2 Years	3.65%	3.65%	3.50%	2.10%	3.95%	0.90%
2 Year - Less than 3 Year	3.55%	3.55%	3.45%	1.90%	3.70%	0.80%
3 Year - Less than 4 Year	3.30%	3.30%	3.20%	1.75%	3.40%	No Quote
4 Year - Less than 5 Year	3.20%	3.20%	No Quote	No Quote	No Quote	No Quote
5 Year Only	3.00%	3.00%	No Quote	No Quote	No Quote	No Quote

*Kotak Mahindra Bank FCNR(B) Deposit Interest Rates w.e.f 1st October, 2026

Federal Bank FCNR Rates

Federal Bank presents its FCNR(B) deposit rates for various tenures and foreign currencies (last verified in November 2026):

Period	USD	GBP	EUR	YEN	CAD	AUD	CHF	NZD	SGD	HKD
1 year to less than 2 years	4.00%	4.00%	2.50%	0.20%	2.75%	4.40%	0.05%	0.05%	0.42%	0.33%
2 years to less than 3 years	3.90%	4.20%	2.25%	0.20%	3.00%	4.20%	NA	NA	0.84%	0.72%
3 years to less than 4 years	3.50%	4.00%	2.00%	0.20%	2.50%	4.00%	NA	NA	0.78%	0.74%
4 years to less than 5 years	3.25%	3.50%	1.75%	0.10%	2.50%	3.60%	NA	NA	0.78%	0.65%
5 years only	2.90%	3.00%	1.65%	0.10%	2.25%	3.60%	NA	NA	0.80%	0.57%

*Federal Bank FCNR Deposit Rates w.e.f.1st September 2026

IndusInd Bank FCNR Rates

IndusInd Bank’s FCNR (B) deposits come with varying interest rates depending on currency and tenure (last verified in November 2026):

Period / Currency	USD < 1 Mio	USD 1 Mio < 10 Mio	USD 10 Mio < 25 Mio	USD 25 Mio & Above	GBP < 1 Mio	GBP 1 Mio & Above	EUR	JPY	CAD	AUD
1 yr < 2 yrs	4.00%	4.00%	4.00%	4.00%	4.00%	4.00%	2.45%	0.01%	2.25%	4.45%
2 yrs < 3 yrs	4.25%	4.25%	4.25%	4.25%	4.25%	4.25%	0.01%	0.01%	0.01%	0.01%
3 yrs < 4 yrs	3.50%	3.50%	3.50%	3.50%	3.50%	3.50%	0.01%	0.01%	0.01%	0.01%
4 yrs < 5 yrs	3.50%	3.50%	3.50%	3.50%	3.50%	3.50%	0.01%	0.01%	0.01%	0.01%
5 yrs	3.50%	3.50%	3.50%	3.50%	3.50%	3.50%	0.01%	0.01%	0.01%	0.01%

*IndusInd Bank FCNR Rates w.e.f 3rd July 2026.

South Indian Bank FCNR Rates

South Indian Bank provides FCNR (B) deposit options with competitive interest rates for NRIs in major currencies (last verified in November 2026):

Maturity Period	USD (Up to & incl. 5L)	USD (Above 5L)	GBP	EUR	AUD	CHF	JPY	CAD
1 year to less than 2 years	4.10%	4.50%	4.00%	3.00%	4.20%	0.05%	0.20%	3.50%
2 years to less than 3 years	4.25%	4.25%	3.75%	2.00%	3.50%	0.00%	0.20%	3.50%
3 years to less than 4 years	4.00%	4.00%	2.45%	1.00%	3.00%	0.00%	0.05%	3.15%
4 years to less than 5 years	3.75%	3.75%	2.45%	1.00%	3.20%	NA	0.05%	3.20%
5 years	3.90%	3.90%	2.45%	1.00%	3.45%	NA	0.05%	3.25%

*South Indian Bank FCNR Deposit Rates w.e.f. 29th September 2026

Bank of Maharashtra FCNR Rates

Bank of Maharashtra offers a range of FCNR (B) interest rates in multiple foreign currencies for different tenures (last verified in November 2026):

Period	USD	GBP	EURO	AUD	CAD
1 year to less than 2 years	5.20%	3.65%	1.50%	1.25%	1.04%
2 years to less than 3 years	3.10%	2.20%	0.01%	1.45%	2.10%
3 years to less than 4 years	3.10%	2.30%	0.01%	1.80%	2.32%
4 years to less than 5 years	3.00%	2.30%	0.10%	1.85%	2.38%
5 years only	3.00%	2.30%	0.15%	2.00%	2.39%

*Bank of Maharashtra FCNR Rates w.e.f. 01st September, 2026.

Indian Overseas Bank FCNR Rates

For NRIs, Indian Overseas Bank provides attractive FCNR (B) deposit rates across various tenures and major foreign currencies (last verified in November 2026):

Currency	1 Year	> 1 Year < 2 Years	2 Years < 3 Years	3 Years < 4 Years	4 Years < 5 Years	5 Years
USD	5.00%	4.50%	3.20%	3.15%	3.15%	3.15%
GBP	NA	4.50%	2.10%	2.15%	2.20%	2.25%
EUR	NA	2.50%	0.15%	0.15%	0.15%	0.15%
JPY	NA	0.03%	0.05%	0.05%	0.05%	0.05%
CAD	NA	0.50%	1.60%	1.80%	1.90%	1.95%
AUD	NA	0.70%	1.00%	1.25%	1.55%	1.85%
CHF	NA	0.00%	0.00%	0.02%	0.02%	0.02%
NZD	NA	1.00%	1.20%	1.40%	1.50%	1.60%
SGD	NA	0.42%	0.89%	1.09%	1.23%	1.39%

*Indian Overseas Bank FCNR Deposit Rates w.e.f. 15th June, 2026

IDBI Bank FCNR Rates

IDBI Bank provides attractive FCNR (B) deposit rates for NRIs across different tenures and major foreign currencies (last verified in November 2026):

Maturity Period	USD (Up to USD 1 Mio)	GBP	EUR	AUD	CAD	JPY	SGD	HKD	CHF
1 yr to less than 2 yrs	4.55%	4.00%	2.65%	3.55%	2.85%	0.40%	1.75%	0.50%	N.A
2 yrs to less than 3yrs	3.70%	3.15%	1.95%	2.55%	2.05%	N.A	1.00%	0.50%	N.A.
3 yrs to less than 4 yrs	3.25%	2.55%	1.70%	2.05%	1.75%	N.A.	0.60%	0.50%	N.A.
4 yrs to less than 5 yrs	3.15%	2.50%	1.50%	1.95%	1.75%	N.A.	0.45%	0.50%	N.A.
5 years only	3.15%	2.50%	1.50%	1.80%	1.75%	N.A.	0.45%	0.50%	N.A.

*IDBI Bank FCNR Deposit Rates October 01, 2026

FCNR Premature Withdrawal Rules

According to the latest RBI guidelines on FCNR deposits, early withdrawals are subject to the following conditions:

Minimum Deposit Period & Interest Eligibility:

The minimum period for an FCNR deposit is 1 year. If you withdraw before completing 1 year, no interest is paid. If withdrawn after 1 year but before maturity, interest is paid for the period the deposit actually ran, rather than the original agreed rate.
Penalties & Exchange Losses:

Banks may charge an early withdrawal penalty and pass on any currency conversion losses to you. Any loss caused by currency exchange fluctuations or swap unwinding upon early withdrawal is recovered from the depositor or borne according to bank policy.
Foreign Currency Outflows & Swap Unwinding:

For deposits tied to RBI swap schemes, early withdrawals require the bank to unwind/cancel the corresponding swap deal with the RBI. Banks can use alternative foreign currency funding to pay the depositor while swap cancellation is processed.

Key Features of FCNR Deposits

FCNR Deposits offer NRIs a secure way to hold their funds in foreign currency while earning assured returns. The features below explain how these deposits work and the specific benefits they provide:

Foreign Currency Protection:

Your money stays in foreign currency (like USD, GBP, EUR, CAD, AUD, or JPY). Since there is no conversion to Indian Rupees, you face zero exchange rate risk or losses from Rupee drops.
Completely Tax-Free:

All interest earned on an FCNR deposit is 100% exempt from income tax in India as long as you maintain NRI status.
100% Repatriable:

You can transfer the entire principal amount and all earned interest back overseas anytime without any limit or extra approval.
Flexible Fixed Tenures:

Deposits can be booked for fixed terms ranging from 1 to 5 years, depending on the currency and bank guidelines.
Guaranteed Interest Rates:

The interest rate agreed upon at the time of booking remains fixed for the entire tenure, giving you predictable returns.
Loan and Overdraft Facilities:

You can use your deposit as collateral to get a loan or overdraft in Indian Rupees or foreign currency (often up to 85% of the deposit value).
Early Withdrawal Rules:
- First 12 Months: No interest is paid if you close the deposit before completing 1 full year.
- After 1 Year: You receive interest for the actual period held, though banks may deduct a small penalty fee (usually 0.50% to 1%).
Safety and Convenience:

Deposits are managed easily via 24/7 online banking, with optional auto-renewal at maturity, and are protected under RBI regulations.

Eligibility Criteria for FCNR Deposits

FCNR Deposits are designed specifically for non-resident Indians and persons of Indian origin. The following investors are eligible to open an FCNR deposit account:

Non-Resident Indians (NRIs): Indian citizens residing abroad.
PIOs and OCIs: Persons of Indian Origin (PIOs) and Overseas Citizens of India (OCIs), where permitted under current FEMA regulations.
Seafarers: Employed on foreign vessels and of Indian origin.

Note: Certain restrictions may apply to residents of Pakistan or Bangladesh.

Documents Required for FCNR Deposits

To open an FCNR deposit, you must submit:

Valid passport or proof of OCI/PIO status.
Proof of overseas address.
PAN card or Form 60.
Recent passport-size photographs.

This supports compliance with RBI and bank regulations and enables smooth account setup for eligible customers.

Factors to Consider Before Opening an FCNR Deposit Account

Before opening an FCNR deposit account, it is essential to understand certain aspects that affect eligibility, operations, and management of funds:

Minimum Deposit: Banks need a minimum deposit for opening an FCNR account. This changes depending on the bank and currency, so confirm current requirements.
Joint Accounts: Accounts can generally be held jointly with another NRI. Resident close relatives may be permitted only under RBI guidelines (for example, on a former-or-survivor basis where allowed by the bank).
Power of Attorney (POA): A POA empowers a family member in India to carry out transactions. It can be set up at the branch with a completed form.
Nominee: A nominee ensures the funds are shifted properly without any delay if the depositor dies. Customers can add nominees using online banking options or by completing the request at a branch.
Account Documents and Rules: Check all documents, including POA, nomination forms, and account terms, before opening an FCNR deposit to ensure compliance and support smooth account management.

Tax Implications on FCNR Deposits

Interest earned on FCNR (B) deposits is fully exempt from Indian income tax for Non-Residents (NR) and Resident but Not Ordinarily Resident (RNOR) individuals under Section 11, read with Schedule IV, Serial No. 14 of the Income-tax Act, 2025 (formerly Section 10(15)(iv)(fa) of the 1961 Act).

Upon returning to India, the deposit can run until maturity at the contracted rate under RBI/FEMA rules, after which it must be converted to a Resident Rupee or RFC account. Tax exemption continues while RNOR status holds, but the interest may still be subject to tax in the depositor's overseas country of residence based on local laws and DTAA provisions.

Which Bank Should You Choose?

Choosing the right FCNR deposit depends on your financial goals and priorities. If earning maximum return is your main goal, look for banks offering top promotional USD rates. However, if you prefer flexible currency choices, a long-standing banking relationship, or comprehensive global services, choosing an established partner bank might be a better fit.

You should look for these pointers before making your decision:

Preferred Foreign Currency: Choose a bank that accepts the currency you earn in (e.g., USD, GBP, EUR, CAD) to avoid paying currency conversion fees and extra exchange charges.
Deposit Term: Pick a tenure (1 to 5 years) that matches when you will need the money, as interest rates differ depending on how long you lock in your funds.
Current Promotional Interest Rate: Look for temporary fixed deposit rates or special deals banks run to maximise the interest returns on your deposit.
Minimum Deposit Requirements: Check the minimum amount needed to open an account, as well as higher deposit tiers that may qualify you for better interest rates.
Premature Withdrawal Rules: Review the penalties, interest rate recalculations, and potential conversion losses if you need to access your money before maturity (remembering the mandatory 1-year lock-in for interest).
Overall NRI Banking Services: Evaluate the quality of the bank’s mobile app, digital repatriation options, ease of remote account opening, and dedicated relationship manager support.

Key Takeaways

FCNR deposits offer NRIs tax-free interest in India, with rates up to 4.10% p.a. for 1 to 5-year tenures. The principal and interest are fully repatriable, helping protect foreign currency savings from rupee depreciation. These deposits provide flexible tenure options, though premature withdrawal may attract penalties as per bank rules.

FAQs

What are the best FCNR rates?

The FCNR deposit rates in India by top banks like YES Bank, Bank of Baroda, Canara, give up to 5.50% p.a. to 6.60% p.a. on USD currency.
What are the disadvantages of an FCNR account?

The main downside of an FCNR Account is that your money is locked in for 1 to 5 years. If you withdraw it before completing one full year, you won't earn any interest.
Which banks offers the best FCNR deposits?
Few banks which offers the best FCNR rates in India are:
- YES Bank FCNR Rates - up to 6.70% on GBP
- Canara Bank FCNR Rates - up to 6.50% on USD
- Bank of Maharashtra FCNR Rates - up to 5.20% on USD
- DCB Bank FCNR Rates - up to 5.10% on USD
- Bank of Baroda - up to 5.00% on USD
What is an FCNR deposit in India?

An FCNR (Foreign Currency Non-Resident) deposit is a fixed-term deposit held in India for eligible non-residents, including NRIs, PIOs, and OCIs. It lets you save in foreign currencies like USD, GBP, EUR, CAD, AUD, or JPY without converting your money into Indian Rupees, shielding your savings from rupee fluctuations
Is an FCNR account better than an NRE account?

FCNR accounts are preferable for currency protection and tax-free interest on foreign currency deposits. In contrast, NRE accounts offer higher flexibility, but funds are maintained in Indian Rupees, exposing them to exchange rate risks.
Are FCNR Deposits taxable?

Customers holding FCNR Deposits receive complete tax exemption on the interest in India under Section 11, read with Schedule IV, Serial Number 14, of the Income-tax Act, 2025 (earlier Section 10(15)(iv)(fa)), up to the date of maturity or conversion into a resident account.
What is the difference between FCNR (A) and FCNR (B) deposits?
Here is the clear difference between FCNR (A) vs. FCNR (B):
- FCNR (A) (1975–1993): Offered an exchange rate guarantee backed by the government, but was eventually replaced because it became too costly for the government to maintain.
- FCNR (B) (1993–Present): Shifted the exchange rate risk to individual banks. Today, all active FCNR deposits follow this model, giving non-residents a tax-free, fully transferable way to earn interest in major foreign currencies.

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