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PNB highlights FCNR(B) deposits for NRI savers
The bank offers foreign currency deposits across six currencies, with interest rates of up to 6.60 per cent per annum
- PUBLISHED: Fri 14 Aug 2026, 2:19 PM
For millions of Indians living and working overseas, managing hard-earned foreign currency savings is not merely about earning a return, but also about protecting the value of those savings.
In this context, Foreign Currency Non-Resident (Bank), or FCNR(B), deposits offer NRIs a combination of competitive returns, currency protection and repatriation flexibility. Unlike conventional rupee deposits, an FCNR(B) deposit is maintained in a designated foreign currency. This means that an NRI can invest in US dollars, pounds, euros, Canadian dollars, Australian dollars and Japanese yen without first converting the funds into Indian rupees.
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The principal and interest remain denominated in the chosen foreign currency, thereby reducing exposure to fluctuations between the foreign currency and the rupee.
Punjab National Bank (PNB) offers competitive interest rates on its FCNR(B) deposits. Under its current rate structure, US dollar and British pound FCNR(B) deposits can earn rates of up to 6.60 per cent per annum for a five-year tenure, while rates are also available for deposits in euros, Canadian dollars and Australian dollars.
Beyond the interest rate, FCNR(B) deposits offer full repatriability of both principal and interest, allowing NRIs to move their funds abroad in accordance with applicable regulations. PNB also provides the facility of loans or overdrafts against FCNR(B) deposits, enabling customers to meet short-term financial requirements without prematurely breaking their deposit.
Another consideration is the tax treatment. Interest earned on FCNR(B) deposits is generally exempt from Indian income tax for eligible NRIs, subject to prevailing tax laws and the customer’s residential status.
At a time when NRIs are increasingly looking at ways to manage overseas earnings while limiting currency exposure, FCNR(B) deposits can form part of a diversified financial portfolio. With competitive rates, multiple currency options and an established NRI banking platform, PNB is offering NRIs another avenue to manage their foreign-currency savings while earning returns.