RBI has removed interest rate caps on FCNR (B) deposits, allowing banks to offer more competitive returns.
New FCNR deposits with 3-5 year tenures opened before September 30, 2026, benefit from full hedging cost coverage.
Small Finance Banks are currently offering aggressive interest rates of up to 7.13% on dollar-denominated deposits.
FCNR accounts provide a tax-free, low-risk investment option that eliminates exposure to Indian Rupee currency depreciation.