RBI’s FCNR Deposit Opportunity: What NRIs Should Know The Reserve Bank of India has introduced a temporary measure that has significantly increased interest rates on FCNR deposits, with some banks offering returns close to 7%. This development has caught the attention of NRIs looking for stable, foreign currency investments in a volatile global rate environment. However, the headline returns need to be understood in the right context before making any decision. In this blog, you will understand what the RBI’s latest move means, why rates have increased, and whether it fits into your investment strategy. What Did RBI Announce? On 8 June 2026, the RBI introduced a concessional USD-INR swap facility for banks on fresh FCNR(B) deposits with maturities of 3 to 5 years. This facility reduces the cost for banks to hedge currency risk, allowing them to offer more competitive interest rates on foreign currency deposits. The window is open until 30 September 2026, making it a time-b...