RBI's Special FCNR(B) Swap Window - Open Until 30 September 2026
The Reserve Bank of India is temporarily absorbing the currency-hedging cost that banks normally pass on to depositors, for fresh FCNR(B) deposits booked between 8 June 2026 and 30 September 2026. As a result, several major banks are now quoting notably higher USD FCNR rates than usual - tax-free in India.
Deposits opened under this window carry a minimum 1-year lock-in, and exact eligibility (deposit size, tenure) varies by bank. Confirm current terms with your bank before booking.
Calculate FCNR Returns
FCNR compounding: simple interest for 1-year tenure; half-yearly compounding for tenures above 1 year (standard FCNR(B) convention).
Compare FCNR(B) Deposit Rates - Top Banks for NRIs (% p.a.)
Highest currently reported rate per currency | Updated: Jul 2026
| Bank | USD | GBP | EUR | AUD | CAD |
|---|---|---|---|---|---|
| SBI | 6.00 | — | — | — | — |
| HDFC | 3.55 | 3.65 | 1.70 | — | — |
| ICICI | 6.00 | 4.75 | — | 4.75 | 5.15 |
| Axis | 4.60 | 4.25 | 1.65 | 3.75 | 2.65 |
| Kotak | 6.15 | 4.75 | — | — | — |
| Yes Bank | 4.50 | 4.40 | 2.75 | 4.40 | 2.75 |
| RBL Bank | 4.85 | 4.20 | 3.00 | 3.50 | 2.75 |
| IDBI Bank | 4.55 | 4.00 | 2.65 | 3.55 | 2.90 |
| South Indian Bank | 4.50 | 4.00 | 3.00 | 4.20 | 3.50 |
* Highest currently reported rate per currency; actual rate depends on tenure (1-5 yrs) and deposit size (larger deposits, e.g. $1 million+, often get better rates). "—" means the bank does not publish a rate for that currency, or does not offer it. FCNR rates are unusually volatile in 2026 due to the RBI swap window above — always confirm the exact tenure-wise rate with your bank before booking. Last updated: July 2026.
FCNR Interest Breakdown - Period by Period Analysis
| Period | Opening Balance | Interest Earned | Total Interest | Closing Balance |
|---|
Frequently Asked Questions about FCNR Deposits
What is an FCNR(B) deposit?
FCNR(B) stands for Foreign Currency Non-Resident (Bank) deposit. It lets NRIs, PIOs, and OCIs hold a fixed deposit in India in a foreign currency such as USD, GBP, EUR, AUD, CAD, JPY or SGD. Both principal and interest stay in that same currency, so there is no exchange rate risk during the tenure, and the entire amount is fully repatriable under FEMA with no upper limit.
Is FCNR interest taxable in India?
No. Interest earned on FCNR(B) deposits is fully exempt from income tax in India under Section 10(15)(iv)(fa) of the Income Tax Act, as long as the depositor holds NRI, PIO, OCI or RNOR status. No TDS is deducted on FCNR interest, unlike regular resident FDs.
What is the RBI's special FCNR swap window in 2026?
In June 2026, the RBI opened a temporary facility where it absorbs the currency-hedging cost banks normally pass on to depositors, for fresh FCNR(B) deposits booked between 8 June 2026 and 30 September 2026. This has allowed several major banks to offer notably higher USD FCNR rates, tax-free, than in a typical year. Deposits under the window carry a minimum 1-year lock-in, and exact eligibility varies by bank - confirm current terms before booking.
What is the minimum and maximum tenure for an FCNR deposit?
FCNR(B) deposits can be booked for a minimum of 1 year and a maximum of 5 years, as per RBI regulations. No interest is paid if the deposit is withdrawn before completing 1 year.
How is interest compounded on FCNR deposits?
For a 1-year FCNR deposit, simple interest is paid at maturity. For tenures longer than 1 year, interest is compounded at half-yearly (6-month) intervals - unlike regular Indian rupee FDs, which typically compound quarterly. Our calculator applies this convention automatically based on the tenure you select.
What is the difference between FCNR, NRE and NRO deposits?
FCNR deposits are held in foreign currency, so they carry no exchange rate risk and are fully tax-free and repatriable. NRE deposits are held in Indian Rupees, are also tax-free and fully repatriable, but convert your foreign earnings to INR at booking, exposing you to currency movement over the tenure. NRO deposits are meant for income earned in India (rent, dividends, etc.), are held in INR, are fully taxable, and repatriation of principal is capped at USD 1 million per financial year.
What happens if I withdraw my FCNR deposit before maturity?
If withdrawn before completing 1 year, no interest is paid at all. After 1 year, most banks do not charge a separate premature withdrawal penalty, but interest is recalculated at the rate applicable to the period the deposit was actually held, which is usually lower than the original contracted rate.
Which currencies can I open an FCNR deposit in?
Most major Indian banks offer FCNR deposits in USD, GBP, EUR, AUD, CAD and JPY. Some banks also offer SGD, HKD, CHF and NZD. Not every bank supports every currency - for example, ICICI Bank does not currently offer FCNR deposits in EUR. Always check currency availability with your specific bank.
How to Use the FCNR Deposit Calculator
Step 1: Select Currency
Choose the foreign currency you plan to hold the deposit in - USD, GBP, EUR, AUD, CAD, SGD or JPY.
Step 2: Enter Principal Amount
Enter the deposit amount in that foreign currency - the amount you'll actually transfer, not converted to INR.
Step 3: Select Tenure
Choose a tenure between 1 and 5 years. FCNR deposits cannot be booked outside this range under RBI rules.
Step 4: Enter Interest Rate
Enter the annual rate quoted by your bank for that currency and tenure. Refer to the rates table above for current indicative rates.
Understanding FCNR Returns
Unlike a regular rupee Fixed Deposit, an FCNR deposit's maturity value depends on the principal, rate and tenure - but never on the INR exchange rate, since both principal and interest are held and paid out in the original foreign currency. This is the main reason NRIs prefer FCNR over NRE deposits when they expect the Rupee to weaken: an NRE deposit's INR value may fall in foreign-currency terms, while an FCNR deposit's foreign-currency value is unaffected either way.
Example: If you invest $50,000 at a 5% interest rate for a 3-year FCNR deposit with half-yearly compounding, your maturity amount will be approximately $57,984.67, earning $7,984.67 in interest - completely tax-free in India.