RBI’s push for FCNR deposits is designed to bring more foreign currency into India. But the latest available data show that most NRI bank money in India remains in rupee-denominated accounts.
Where NRI Bank Deposits Were Held
At the end of March 2026, NRI deposits in Indian banks totaled $165.65 billion. NRE accounts held $98.56 billion, NRO accounts held $33.33 billion and FCNR(B) deposits held $33.76 billion. The figures show that nearly 80% of NRI bank deposits in India were held in rupee-denominated accounts, while about one-fifth remained in foreign-currency deposits.
MUMBAI, India — The Reserve Bank of India widened its effort to attract overseas funds on Wednesday, June 17, 2026, by temporarily removing interest-rate ceilings on fresh three- to five-year FCNR(B) deposits and NRE deposits of three years or more. The relaxation runs through Wednesday, September 30, 2026.
Each account serves a different purpose based on the source of funds, currency preference, taxation and repatriation needs. Read our detailed comparison of FCNR, NRE and NRO accounts to understand which option may suit different NRI banking needs.
Where NRI Money Is Actually Sitting
At the end of March 2026, outstanding NRI deposits in Indian banks totaled $165.65 billion, according to RBI data reported by The Economic Times and The Indian Express. NRE accounts held $98.56 billion, NRO accounts held $33.33 billion and FCNR(B) deposits held $33.76 billion.
That means nearly 80% of NRI bank deposits in India were held in rupee-denominated NRE and NRO accounts, while roughly one-fifth remained in FCNR(B) deposits.
The split helps explain the RBI’s policy focus. Fresh FCNR(B) inflows dropped to $946 million in the 2025-26 financial year from $7.1 billion a year earlier, even as rupee-based NRE and NRO balances remained much larger.
Why FCNR Deposits Matter to the RBI
FCNR(B) accounts allow eligible overseas Indians to place term deposits with Indian banks in freely convertible foreign currencies. Unlike NRE and NRO accounts, which are maintained in rupees, FCNR(B) deposits preserve the deposit in foreign currency.
On Monday, June 8, 2026, the RBI also detailed a swap facility intended to offset banks’ hedging costs on eligible three- to five-year FCNR deposits mobilized through September 30. The latest rate relaxation gives banks additional room to compete for overseas savings.
How Major Banks’ USD FCNR Rates Compare
Several major Indian banks have raised rates on three- to five-year US dollar FCNR(B) deposits following the RBI’s latest measures.
Rates checked at 8:53 p.m. IST on Thursday, June 18, 2026 (11:23 a.m. ET).
| Bank and deposit plan | 3 to under 4 years | 4 to under 5 years | 5 years | Effective date |
|---|---|---|---|---|
| HDFC Bank | 6.00% | 6.00% | 6.00% | June 10, 2026 |
| ICICI Bank | 6.00% | 6.00% | 6.00% | June 11, 2026 |
| Axis Bank | 6.00% | 6.00% | 6.00% | June 13, 2026 |
| SBI Advantage — up to $1 million | 5.25% | 5.50% | 5.75% | June 15, 2026 |
| SBI Advantage — above $1 million | 5.50% | 5.75% | 6.00% | June 15, 2026 |
The figures are annual rates for US dollar-denominated FCNR(B) deposits. They show that several large banks are offering 6% on qualifying three- to five-year deposits, while SBI’s rate varies by tenure and deposit size.
U.S.-based NRIs comparing Indian deposit offers with domestic savings products can read our analysis of FCNR deposits vs U.S. CDs, including differences in rates, taxation, liquidity and deposit insurance.
Rates alone do not provide a complete comparison. The special deposits may include a one-year lock-in, restrictions on early withdrawal or a reduced interest payment when money is withdrawn before maturity. Rates and conditions can also change without notice, so customers should confirm the final rate and withdrawal rules directly with the bank before booking a deposit.
For NRIs in the United States, however, the decision is not based on the advertised rate alone. Liquidity needs, deposit tenure, access to funds, tax obligations in the country of residence and returns available from U.S. savings products may all influence whether money moves to India.
The RBI has made FCNR deposits more competitive, but the data show the larger challenge clearly: most NRI bank money in India is already concentrated in rupee accounts. Whether the incentives change that balance will depend on the rates banks offer and whether overseas Indians view the added return as worth committing funds for several years.
