Can I withdraw a premature FCNR deposit?

Yes, you can withdraw an FCNR deposit prematurely but a penalty at the rate of 1% will be applicable.

Is an FCNR deposit account a good investment option?

Yes, an FCNR deposit account can be considered an ideal investment option for NRIs especially if they are interested in investing in a term deposit scheme.

Can I get loans against my FCNR deposits?

Yes, depositors can apply for loans against their FCNR deposits. The loan amount will be sanctioned depending on the currency of the FCNR. You can apply for a loan only for personal purposes, business activities (exception includes speculative and re-lending purposes) and plantation and agricultural activities.

Can a depositor choose someone as his/her nominee for the FCNR account?

Yes, depositors can choose someone close to them as a nominee for their FCNR account.

When I open an FCNR deposit account, will I receive an ATM cum debit card and cheque book?

No, depositors will not receive an ATM cum debit card or cheque book when they open an FCNR deposit account.

FCNR Account - What is a Foreign Currency Non-Resident Account?

Stable Money Team

Author Updated on Apr 12, 2025

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An FCNR account, full form - Foreign Currency Non-Resident account. There are many investment options for Non-Resident Indians (NRIs) in various financial institutions in India. If you’re an NRI, you can consider opening an FCNR account, which is a fixed deposit account. It will help you hold your money in the currency of the country where you’ve earned the amount.

In this blog, we’ll explore some of the important details about an FCNR account. Let’s start by having a proper understanding of what an FCNR account is.

What is an FCNR Account?

An FCNR account (Foreign Currency Non-Resident account) helps Non-Resident Indians (NRIs) to invest their money earned in foreign countries in term deposit schemes in India.

An FCNR deposit account is an ideal investment option for NRIs because it lets them hold their earnings in foreign currencies and earn interest at the same time. Considering that the investment amount is held in a foreign denomination, depositors might not have to face exchange rate fluctuations. Moreover, the fact that you can earn high and risk-free returns is a significant feature of FCNR accounts.

Currencies Permitted Under an FCNR Account

The Reserve Bank of India allows the following currencies under an FCNR account:

US Dollar
Euro
Pound Sterling
Canadian Dollar
Japanese Yen
Swiss Franc
Australian Dollar
Singapore Dollar
Hong Kong Dollar
Danish Krone and others

Financial experts recommend depositors to check whether they can open an FCNR deposit account in their preferred currencies at the bank of their choice before depositing their hard earned money.

Check the features of FCNR accounts:

What are the Features of an FCNR Account?

These accounts are a type of term deposit accounts. While banks may allow premature withdrawals, interest gets paid only after the completion of 1 year of depositing.
The procedure of opening an FCNR account is quite easy. All you have to do is transfer the initial amount from your existing NRE (Non-Resident External) account to the FCNR account.
The interest income from FCNR accounts is entirely tax-exempt under Indian law.
Moreover, both the principal and interest amount are fully repatriable. In other words, you can transfer the money abroad.
You can apply for loans against your FCNR deposits and repay them with the maturity proceedings.
You can open an FCNR account with two or even more joint NRI account holders.

What are the Documents Required for an FCNR Account?

Here’s the list of documents required to open an FCNR account:

Passport
Recent passport-sized colour photographs
Proof of address in India (this is optional)
A copy of your PAN card or Form 60
Proof of NRI status– Residence Permit/Employment or Work Visa/ Proof of residence
Valid OCI (Overseas Citizenship of India)/PIO (Person of Indian Origin) card, proof of PIO status and PIO declaration (for PIOs)
Current work contract and CDC (Continuous Discharge Certificate) copy for NRI seafarers. The documents must contain the disembarkation stamp along with the FEMA (Foreign Exchange Management Act) declaration.

What are the Eligibility Criteria for Opening an FCNR Account?

This section will provide a list of entities eligible to open an FCNR account:

The individual has to be a non-resident Indian , a person of Indian origin or an overseas citizen of India.
People who wish to open an FCNR account must have an Indian passport issued by the Government of India at some point in their lives.
If they decide to open a joint FCNR account, they must not do so with an Indian resident.
People must be Indian citizens according to the Citizenship Act of 1955, to be eligible to open an FCNR account.

How to Open an FCNR Account?

It’s not difficult to open an FCNR account at a bank in India. All you need to do is follow these steps:

Step 1: Make sure you have all the required proof of identity, address and residence ready at hand. Keep in mind the fact that you have to attest each copy with the Indian embassy or your bank in the country you’re currently residing in.
Step 2: Almost every bank will allow you to open an FCNR account online. You have to log into your net banking site
Step 3: Navigate the cursor to the FCNR account section
Step 4: Fill up the FCNR application form with all the required details.
Step 5: Submit the form along with the requisite documents to open an FCNR account.

But, if you wish to open an FCNR account through offline procedures, you have to submit the hard copy of FCNR account opening form along with the attested documents. Financial institutions may ask people to submit additional documents depending on their requirements for both online as well as offline FCNR account opening.

Latest FCNR Deposit Rates - 2024

In this section, we’ll explore the FCNR interest rates at the leading banks in this country.

1. FCNR Deposit Rates at State Bank of India

FCNR Tenure	USD	GBP	EURO	CAD	AUD	JPY
1 Year	5.60	5.00	1.50	4.50	3.60	0.02
Above 1 Year to less than 2 Years	5.60	5.00	1.50	4.50	3.60	0.02
2 Years to less than 3 Years	4.30	2.35	1.50	4.10	3.50	0.05
3 Years to less than 4 Years	4.00	2.45	1.50	3.85	3.00	0.05
4 Years to less than 5 Years	4.00	2.45	1.50	3.90	3.00	0.05
5 Years	4.05	2.45	1.50	3.95	3.00	0.05

2. RBL Bank FCNR Deposit Rates

FCNR Tenure	USD	GBP	EUR	AUD	SGD
1 Year and above but less than 2 Years	5.70	4.00	3.00	3.50	4.05
2 Years and above but less than 3 Years	5.50	4.20	2.20	3.50	3.75
3 Years and above but less than 4 Years	4.40	4.00	2.00	2.85	1.30
4 Years and above but less than 5 Years	4.45	3.00	2.00	2.75	1.35
5 Years	5.85	3.00	2.00	2.60	1.40

3. ICICI Bank FCNR Deposit Rates

FCNR Tenure	USD	SGD	GBP	AUD	CAD
12 Months	5.60 - 5.85	3.50	5.10	4.25	4.80
>12 months < 15 months	5.00	3.50	5.00	4.00	4.50
>=15 months < 24 months	4.75	3.00	4.50	4.00	4.25
>= 24 months < 36 months	4.25	2.75	4.50	3.75	3.75
>= 36 months < 48 months	4.00	NA	NA	NA	NA
>= 48 months < 60 months	3.75	NA	NA	NA	NA
60 Months	3.75	NA	NA	NA	NA

4. Axis Bank FCNR Deposit Rates

FCNR Tenure	USD	GBP	EUR	AUD	CAD	JPY
1 year < 2 years	5.80	4.00	2.90	3.70	4.20	0.01
2 years < 3 years	4.30	3.75	0.01	3.75	3.50	0.01
3 years < 4 years	4.10	2.45	0.01	3.80	3.45	0.01
4 years < 5 years	4.10	2.45	0.01	4.00	3.35	0.01
5 years	4.10	2.45	0.01	4.05	3.30	0.01

5. FCNR Deposit Rates at IDBI Bank

FCNR Tenure	USD (Up to 2 million)	GBP	EUR	AUD	CAD	JPY
1 Year to less than 2 Years	5.65	5.10	3.70	4.10	4.85	0.35
2 Years to less than 3 Years	5.00	4.80	2.70	4.10	4.55	0.20
3 Years to less than 4 Years	4.60	4.25	2.50	4.05	4.20	0.20
4 Years to less than 5 Years	4.40	3.75	2.50	4.10	4.00	0.20
5 Years Only	4.40	3.75	2.50	4.15	3.85	0.20

Final Word

To sum up, an NRI can open an FCNR account to hold their earnings from foreign countries in the currency of that country. It helps depositors earn an interest income at the same time. You have to keep in mind that if you wish to open an FCNR account, you must have a passport issued by the GoI at some point in your life. As the rate of interest might change without prior notice it is best to check it in the official website of the financial institution before depositing.