FCNR (Foreign Currency Non Resident Account)

FCNR stands for Foreign Currency Non Resident Account (Banks)

Account Opening

  • This is a kind of fixed deposit account opened for depositing income earned overseas.
  • The account is held in the currency in which the deposits are made.
  • These accounts can be opened jointly with other NRIs.
  • Opening of FCNR (B) in the name of individuals/ entities of Bangladesh/ Pakistan nationality/ ownership requires prior approval of Reserve Bank of India.


  • These accounts are exempt from Income Tax in India.
  • Loans with the tenure and interest rates as given below can be given against an FCNR FD:
    Minimum tenure: 1 year Maximum tenure: 5 years
    Rate of Interest: LIBOR/SWAP rates + 200 bps for tenure between 1 to less than 3 yrs & LIBOR/SWAP rates + 400 bps for tenure between 3 to 5 yrs (as fixed by RBI from time to time)
  • Interest is not paid if the deposit is prematurely withdrawn before completion of 1 year.


  • The funds held in these accounts can be remitted back overseas freely subject to terms and conditions of the resident country.

Content Source – Content Partner

Know the process to open NRE and NRO accounts

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