FCNR stands for Foreign Currency Non-Resident. An FCNR(B) Deposit is a foreign-currency Fixed Deposit that allows eligible NRIs and Persons of Indian Origin (PIOs) to maintain funds in India without converting them into Indian Rupees for the deposit tenure.

Unlike a regular savings account, an FCNR Deposit is a term deposit. It is held in a selected foreign currency for a fixed period, while interest is earned in the same currency. This can be relevant for NRIs who expect to use the funds in that foreign currency in the future.

At HDFC Bank, FCNR Deposits are available for tenures from one year to five years. Interest earned is exempt from Indian income tax, and both principal and interest can be repatriated, subject to applicable regulations.

1. Deposit in Foreign Currency

An FCNR Deposit is maintained in the chosen foreign currency throughout its tenure. This means the deposit is not converted into Indian Rupees while it remains invested.

The right currency depends on where you expect to use the funds in the future. For example, keeping funds in the same currency as planned overseas expenses may help avoid an additional conversion during the deposit tenure.

2. Choice of Seven Currencies

HDFC Bank FCNR Deposits can be opened in:

1. US Dollar (USD)
2. Pound Sterling (GBP)
3. Euro (EUR)
4. Japanese Yen (JPY)
5. Australian Dollar (AUD)
6. Canadian Dollar (CAD)
7. Singapore Dollar (SGD)
    

Interest rates can vary by currency and tenure. Always check the live FCNR Deposit rate card before booking.

3. Fixed Tenure from One to Five Years

FCNR (B) Deposits are available for a minimum tenure of one year and a maximum tenure of five years.

Choose a tenure based on when you may need the funds. A longer tenure may not be suitable if you expect to use the amount before maturity.

4. Tax Treatment in India

Interest earned on an FCNR (B) Deposit is exempt from income tax in India, subject to applicable regulations and eligibility conditions.

Tax rules in your country of residence may be different. It may be useful to check your local tax obligations before booking a deposit.

5. Repatriation of Funds

Both the principal amount and interest earned on an FCNR (B) Deposit can be repatriated in the foreign currency of the deposit, subject to applicable regulations.

This can be useful for NRIs who may need the funds outside India after maturity.

6. Overdraft Facility

HDFC Bank may offer an overdraft facility on an NRO Savings or Current Account against an eligible FCNR Fixed Deposit through the Super Saver facility, subject to applicable terms and eligibility.

Select the Currency Carefully

Choose a currency that aligns with your future financial requirements. Converting the deposit into a different currency at maturity can involve exchange-rate movements and conversion costs.

Check the Live Interest Rate

FCNR (B) Deposit interest rates differ by currency and tenure. The interest rate applicable to your Deposit is based on HDFC Bank’s prevailing rate and the availability of clear funds.

Understand Premature Withdrawal Rules

No interest is paid if an FCNR (B) Deposit is withdrawn before completing minimum tenure of one year.

For premature withdrawals after one year, HDFC Bank does not levy a premature-closure penalty. However, interest is calculated based on the rate applicable for the period the Deposit remained with the Bank, rather than the originally contracted rate.

Review Maturity Instructions

Some FCNR Deposits may be renewed or paid out at maturity based on the instructions provided at the time of booking. Review your maturity instructions and update them where required.

Keep Documents Ready

Documentation may include identity proof, PAN, address proof and other documents required under HDFC Bank’s applicable KYC process.

In June 2026, RBI introduced swap window facility for banks mobilising eligible fresh or renewed FCNR(B) Deposits with tenures  between three years to five years provided deposit has a lockin of 1 year.

RBI also temporarily relaxed the interest-rate ceiling on eligible fresh and renewed FCNR(B) Deposits for tenures between three years up to five years until 30 September 2026.

For HDFC Bank FCNR Deposits booked for three to five years between 10 June 2026 and 30 September 2026, a one-year lock-in period applies.

These measures give banks more flexibility in pricing eligible FCNR Deposits. They do not assure a particular interest rate for every customer. Check HDFC Bank’s latest rate card before booking. 

NRIs can consider the following before booking an FCNR Deposit:

• Match the deposit currency with likely future overseas needs.
• Select a tenure based on liquidity requirements.
• Review the current interest rate for the selected currency and tenure.
• Understand the one-year minimum holding requirement.
• Check the premature-withdrawal and maturity instructions in advance.
• Keep KYC and remittance-related documents ready.

1. Confirm your eligibility as an NRI or PIO.
2. Choose your preferred currency and tenure.
3. Check the latest FCNR Deposit interest rate.
4. Book the Deposit through an eligible route, such as inward remittance, transfer from an existing FCNR Deposit or an eligible NRE Account route.
5. Submit the required documents and receive the Deposit confirmation.
    

An FCNR(B) Deposit can help eligible NRIs and PIOs hold funds in a selected foreign currency for a fixed tenure in India. Before opening a Deposit, consider the preferred currency, tenure, liquidity needs, applicable tax treatment and premature-withdrawal terms. Since interest rates and product conditions may change, review HDFC Bank’s latest FCNR Deposit rate card and terms before booking.

Disclaimer:* The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. FCNR Deposit interest rates, eligibility, tenure, funding routes and terms are subject to change. Please check the latest HDFC Bank FCNR Deposit rate card and applicable terms before booking.