FCNR (B) Deposits

The "B" in FCNR (B) stands for "Bank". It indicates that the deposit is maintained as a bank deposit, enabling NRIs to earn interest in foreign currency while avoiding exchange rate risk. The FCNR (B) scheme replaced the earlier FCNR (A) scheme in 1993 by RBI.

The FCNR (B) Deposit is maintained in USD, GBP, EUR, JPY, allowing customers to retain their savings in a globally accepted convertible currency without exchange rate risk.

FCNR (B) Deposits offer several advantages:

• Protection against currency exchange rate volatility
• Attractive interest rates
• Interest income exempt from tax in India
• Full repatriation of principal and interest

You can keep an FCNR (B) Deposit for a minimum of 1 year and a maximum of 5 years per single booking term.

Yes. The interest rate applicable at the time of booking the deposit remains fixed for the entire tenure, providing predictable and assured returns.

Yes. You may open multiple FCNR (B) Deposits based on your financial requirements and investment objectives.

Yes. Both the principal amount and interest earned are fully repatriable, offering complete flexibility in managing your overseas funds.

Yes.

For deposits with original tenor of 1 Year to < 3 Years:

• Within 1 Year of Deposit Booking: No interest payable; no penalty applicable
• After 1 Year: Interest will be paid at the rate applicable for the actual period the deposit remained with the Bank, subject to a 1% penalty

For deposits with original tenor of ≥ 3 Years to ≤ 5 Years:

• Deposits shall be subject to a lock-in period of 12 months
• Post completion of Lock-in period: If such deposit is prematurely withdrawn after completion of the lock-in period, interest shall be paid at the rate applicable, on the date of deposit booking, to the amount and period for which the deposit remained with the bank, less 1% penalty

Applicable for FCNR(B) deposits opened on or after 11th June, 2026.

Yes. Loans or overdraft facilities may be available against FCNR (B) Deposits, subject to the Bank's policy and applicable regulatory guidelines.

Yes. Upon maturity, your FCNR (B) Deposit may be renewed as per your instructions and at the interest rate prevailing on the date of renewal.

No. RBI regulations do not permit banks to offer recurring deposits under the FCNR (B) scheme.

The latest FCNR (B) Deposit interest rates are available on the SBM Bank India website under the Rates & Fees section click here. Since rates are revised periodically, customers are advised to refer to the website for the most up-to-date information before making an investment decision.

For existing bank customers, you can call SBM Bank India's Toll-Free number 1800 2099 335 / 1800 1033 817, or email at [email protected], or if you are an existing customer, please contact your Relationship Manager for assistance.

New to bank NRI/PIO customers can write to [email protected], for booking a new FCNR deposit. Kindly mention your full name, mobile number, email ID, overseas country and preferred date & time you wish to be contacted.