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Bank of Baroda launches FCNR-B scheme for NRIs
The Hindu··12 Jun
The Hindu reported that Bank of Baroda launched a new FCNR-B deposit scheme for non-resident Indians. FCNR-B deposits allow NRIs to hold fixed deposits in foreign currency with Indian banks, helping avoid rupee exchange-rate exposure on the deposit principal and interest.
Prism
What It Means For You
- NRIs with foreign-currency income may use FCNR-B deposits to avoid rupee depreciation risk on deposits.
- Deposit terms matter: interest rate, currency, tenure and withdrawal penalties can change real returns.
- For banks, FCNR-B deposits can help raise foreign-currency funds when offshore borrowing or inflows are important.
What's Happening
- Bank of Baroda launched a new FCNR-B deposit scheme for NRIs.
- The product is aimed at foreign-currency depositors using Indian banking channels.
- Such schemes can support both NRI savings and bank foreign-currency mobilisation.
NRI Deposit Choices
- FCNR-B deposits are held in foreign currency, unlike NRE deposits that are rupee-denominated.
- They are commonly used by diaspora savers who want Indian bank exposure without direct rupee currency risk.
- Interest-rate cycles in the US, Gulf and India influence how attractive such deposits become.
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