Public sector lender Punjab National Bank (PNB) has announced to increase interest rates on on FCNR(B) USD Deposits. The bank said that it will now offer enhanced interest rates of up to 6.10 percent per annum on FCNR(B) USD Deposits, providing Non-Resident Indians (NRIs) with an opportunity to grow their overseas earnings.

Under the special FCNR(B) deposit offering, customers can earn competitive returns on their foreign currency savings as per below tenures:

Key features of the PNB FCNR(B) Deposit Scheme include:

Protection from exchange rate fluctuations by maintaining deposits in foreign currency.

Tax-free interest income in India, subject to prevailing tax regulations.

Availability in all major foreign currencies.
 

The FCNR(B) deposit scheme allows NRIs to maintain deposits in designated foreign currencies, helping protect their savings from exchange rate volatility while earning attractive returns. For deposits of USD 1 million and above (or equivalent), preferential rates may be offered on a negotiated basis, PNB said.

The FCNR(B) deposit scheme is designed to help NRIs secure higher returns on their overseas earnings while maintaining liquidity and flexibility through globally accepted foreign currency deposit options.

Swap Facility for FCNR (B) Deposits

The Reserve Bank of India (RBI) had on June 8, introduced a US Dollar-Rupee Forex Swap Facility for fresh FCNR (B) deposits, mobilised for a minimum tenor of three years and maximum tenor of five years.

RBI has said that the Swap Facility comes into effect immediately and will remain open up to October 16, 2026 for deposits mobilized between the date of this circular and September 30, 2026.

“The swap facility will be available to the AD Category I banks for fresh FCNR(B) deposits mobilized in any freely convertible currency, including deposits that are renewed upon maturity, for a minimum tenor of three years and maximum tenor of five years. However, the swap facility with RBI will be available in US Dollars only,” said the RBI circular.