The Reserve Bank of India’s special policy window for Foreign Currency Non-Resident [FCNR(B)] deposits is witnessing strong interest from Non-Resident Indians (NRIs), with attractive interest rates and simplified digital onboarding encouraging overseas investors to park their funds in India before the September 30, 2026 deadline.
Industry experts say the limited-time RBI initiative has created one of the most attractive opportunities for NRIs in recent years. Under the scheme, which is valid from June 8 to September 30, 2026, the RBI is absorbing the foreign exchange hedging cost on fresh three- to five-year US dollar FCNR(B) deposits. This has enabled banks to offer significantly higher returns to depositors.
According to Dharmendra Maurya, Founder of Rupeeflo, banks are currently offering interest rates ranging from approximately 5.5% to 7% on US dollar FCNR(B) deposits. Besides attractive returns, these deposits also offer tax-free interest income in India while eliminating currency depreciation risk, since both the principal and interest remain in the original foreign currency.
Maurya noted that one of the biggest hurdles for NRIs has traditionally been the lengthy and paperwork-heavy account opening process. Multiple verification stages, physical documentation, and fragmented customer support often discourage investors before they complete their investments.
To address these challenges, Rupeeflo has partnered with leading Indian banks to provide a fully digital onboarding experience, reducing manual paperwork and making it easier for NRIs across major global markets to open accounts and invest quickly.
The higher interest rates have already triggered a sharp rise in enquiries from overseas investors. According to Maurya, many NRIs are evaluating deposits between USD 250,000 and USD 500,000, while some are considering even larger investments before the RBI’s special window closes.
He emphasized that speed will play a crucial role in converting investor interest into actual deposits. Delays caused by documentation, courier-based verification, or manual processing could prevent eligible investors from taking advantage of the scheme before the September 30 deadline.
Industry participants believe that competitive FCNR(B) interest rates, combined with seamless digital onboarding, can significantly boost overseas capital inflows into India. As banks and fintech platforms continue simplifying the investment process, the RBI’s temporary policy window is expected to strengthen the participation of the global Indian diaspora in India’s financial ecosystem.
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