The FCNR (B) Scheme is a scheme introduced by the RBI (Reserve Bank of India) that allows NRIs (Non-Resident Indians) to invest their savings in Foreign Currency (FC) denominated deposits.

The FCNR (B) Scheme was introduced by the RBI on May 15, 1993.

Unlike the earlier FCNR (A) Scheme, under the FCNR (B) Scheme, the exchange risk is borne by the banks themselves. FC funds mobilized under the FCNR (B) Scheme are not surrendered to the RBI and are utilized by the banks as per RBI guidelines.

FCNR (B) deposits can be maintained in six major international currencies: USD, GBP, EUR, AUD, CAD and JPY

NRIs of Indian nationality or origin (except Pak/Bangladesh nationals) can open FCNR (B) deposits.

The minimum deposit amounts for FCNR (B) deposits are as follows:

• USD 1000
• GBP 500
• EUR 1000

Interest payable on FCNR (B) deposits is accounted for in respective currencies. Interest is calculated by the system at each calendar quarter and credited to the FCNR (B) account with a compounding effect at half-yearly rests.

Yes, the interest rates on FCNR (B) deposits are regulated by the RBI. Banks cannot offer interest rates higher than the maximum ceiling rates fixed by the RBI.

The funds for opening FCNR (B) accounts can be received through the following sources:

• Foreign inward remittance in freely convertible foreign currencies received from abroad.
• Proceeds of foreign currency Travelers' Cheques/Notes tendered during temporary visits to India.
• Proceeds of personal cheques drawn on the depositor's foreign currency account maintained abroad.
• Debit to the account holder's existing NRE/FCNR (B) account.
• Balances held in EEFC and RFC(D) accounts upon the change in residential status from resident to non-resident.

FCNR (B) deposits can be maintained only in the six designated currencies (USD, GBP, EUR, AUD, CAD and JPY). If remittances are received in any other convertible foreign currency, they can be converted into the desired designated currency by applying cross-currency rates and duly reporting the transaction to the Treasury branch.