Punjab National Bank (PNB) revises FCNR (B) deposit rates: Check details

Punjab National Bank (PNB) has revised the rates of Foreign Currency Non-Resident Bank (B) deposits following the recent RBI measures to boost foreign inflows. These deposits are investment options for Non-Resident Indians (NRIs), Overseas Citizens of India (OCIs) and Persons of Indian Origin (PIOs) wherein they can securely hold their earnings abroad in foreign currency.

“Following RBI's recent measures to boost foreign currency inflows, Punjab National Bank (PNB) has announced revised FCNR(B) deposit rates,” PNB Chairman & MD, Ashok Chandra was quoted as saying by news agency ANI on X..

The Reserve Bank of India (RBI) is working towards strengthening foreign inflows as the central bank aims to support the depreciating domestic currency as well as finance the broader current account deficit. Accordingly to give fillip to foreign inflows, the RBI during its MPC June review announced tax benefits, in addition to some other measures like expanding the basket of specified government securities (G-secs) for overseas investors.

Here are the FCNR (B) deposit rates of PNB:

What are FCNR (B) deposits?

An FCNR (B) or Foreign Currency Non-Resident (Bank) account allows Non-Resident Indians (NRIs) and Overseas Citizens of India (OCIs) to hold fixed deposits in foreign currencies in India.

Important features of FCNR (B) deposits

These deposit accounts can be held in freely convertible foreign currencies like USD, GBP etc. Lock in can be from a period between 1-5 years. These deposits function typically just as the regular fixed deposit. Also, the amount in total i.e. the principal as well as interest can be transferred at any time to the home country without any restriction.

FCNR (B) deposits thus provide a good investment avenue to OCIs and NRIs, being tax efficient and completely free from any currency-risk.