NRI Investment services
NRI Investment Update
Comprehensive Investment Solutions for NRIs
RBI June 2026 Measures & Latest FD Rates
- Special FCNR swap window
- Rate caps lifted
- Up to 7.13% returns on FCNR deposits
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RBI's June 2026 Measures
What Changed?
- RBI bears full hedging cost on fresh FCNR(B) deposits (3-5 years)
- Interest rate caps on FCNR(B) deposits temporarily withdrawn
- NRE deposit rate restrictions (3+ years) temporarily lifted
- Expanded FAR G-Sec universe – 15, 30, 40 year bonds included
- Tax exemption on G-Sec interest for foreign investors
- Increased NRI/OCI equity investment limits without SEBI registration
Timeline
- June 5, 2026 – RBI announces special swap window
- June 8, 2026 – Deposits eligible under the scheme commence
- June 17, 2026 – RBI lifts interest rate caps on FCNR(B) & NRE deposits
- September 30, 2026 – Scheme window closes for deposits
- October 16, 2026 – Swap window closes for banks
Key Takeaway: The RBI's June 2026 measures have created a rare opportunity for NRIs to earn attractive, tax-free, currency-protected returns on their foreign currency savings — with rates at some banks now exceeding 7%. The special window is open only until September 30, 2026.
FCNR(B) Deposit Rates (June 2026)
Following the RBI’s move, banks have sharply increased FCNR(B) rates with hikes of 250–310 basis points almost overnight. Here’s the latest comparison:
Peak FCNR(B) Rates (US Dollar, 3-5 Year Tenor)
Bank
Peak Rate
Tenor
Notes
Equitas SFB
7.13%
3-5 years
Highest in the market
AU Small Finance Bank
7.1%
5 years
Among the highest
CSB Bank
6.95%
3 to <4 years
Raised by 290 bps
Yes Bank
6.6%
5 years
3-4 year tenors: 6.5-6.55%
Kotak Mahindra Bank
6.15%
3-5 years
Above $1M; below $1M: 6%
ICICI Bank
6%
3-5 years
---
Axis Bank
6%
3-5 years
---
HDFC Bank
6%
3-5 years
Up from 3.65% (hike of 235 bps)
Bank of Baroda
6%
5 years
Special scheme
State Bank of India
3.35%
3-5 years
---
Note: Public sector banks like SBI are offering lower rates compared to private and small finance banks. The spread varies significantly — from 3.35% at SBI to over 7% at Equitas SFB.
Currency-Wise FCNR(B) Rates (SBI)
Currency
Peak Rate
🇺🇸 US Dollar
Up to 4.40%
🇦🇺 Australian Dollar
Up to 4.25%
🇬🇧 British Pound
Up to 4.00%
🇨🇦 Canadian Dollar
Up to 3.01%
🇪🇺 Euro
Up to 2.75%
🇯🇵 Japanese Yen
Up to 0.40%
NRE Fixed Deposit Rates (June 2026)
Bank
NRE FD Rate (1 year)
NRE FD Rate (3-5 years)
IndusInd Bank
~7.00%
Higher for longer tenors
Axis Bank
6.60%
6.60%+
HDFC Bank
6.60%
6.60%+
ICICI Bank
6.60%
6.60%+
Kotak Mahindra Bank
6.60%
6.60%+
Bank of Baroda
6.60%
6.60%+
State Bank of India
6.60%
6.60%+
NRE Savings Account Rates
Bank
NRE Savings Rate
Yes Bank
2.5% – 5% (tiered)
IDFC FIRST Bank
3% – 7% (tiered)
ICICI Bank
3% (up to ₹50L) / 3.5% (above ₹50L)
SBI / HDFC / Axis
~2.5%
⚖️ NRE FD vs. FCNR(B): Which is Better?
NRE FD
- Currency: Rupee-denominated
- Currency risk: You bear rupee depreciation risk
- Tax in India: Tax-free
- Repatriability: Fully repatriable
- Current rates: ~6.6%
Eligibility & Process
- Currency: Foreign currency (USD, GBP, etc.)
- Currency risk: ✅ No currency risk
- Tax in India: Tax-free
- Repatriability: Fully repatriable
- Current rates: Up to 7.13%
Expert View
"For anyone who wants to hedge their dollar holdings, FCNR is inarguably a much better option."
- Kalpesh Ashar, Founder of Full Circle Financial Planners and Advisors
Example: An NRI who parked money in an NRE FD at 7% a year ago has effectively made only 2-2.5% in real dollar terms due to currency erosion. FCNR(B) removes that risk entirely.
Expanded Access
The RBI has expanded the universe of government securities available under the Fully Accessible Route (FAR) by including all new issuances in 15-year, 30-year, and 40-year tenors.
For Sovereign Green Bonds, all new issuances in 5-year, 7-year, 10-year, 15-year, 30-year, and 40-year tenors are now included
Tax Exemption
FPI Investment Limits for 2026-27
Instrument
Limit (% of outstanding stock)
Government Securities (G-Secs)
6%
State Government Securities (SGSs)
2%
Corporate Bonds
15%
Additional Relaxations
- Short-term investment restrictions removed
- Concentration limits and individual security limits for FPIs under the General Route removed
- Increased investment limits for NRIs/OCIs in listed equity instruments without SEBI registration
Summary of June 2026 RBI Measures
Measure
Impact
RBI bears full hedging cost on FCNR(B) deposits (3-5 years)
Banks can offer higher rates to NRIs
Interest rate caps on FCNR(B) deposits temporarily withdrawn
Rates have jumped to 7.13% at some banks
NRE deposit rate restrictions (3+ years) temporarily lifted
Banks have more flexibility
Expanded FAR G-Sec universe (15, 30, 40 year bonds)
More investment options for foreign investors
Tax exemption on G-Sec interest for foreign investors
Higher post-tax returns
Increased NRI/OCI equity investment limits without SEBI registration
Easier equity market access
Concessional swap facility for PSU ECBs
Lower overseas borrowing costs
Quick Comparison: NRI Investment Options (June 2026)
Investment Type
Risk Level
Returns
Tax in India
Repatriability
Min. Investment
FCNR(B) Deposit
Low
3.35% – 7.13%
Tax-free
Fully repatriable
USD 1,000+
NRE FD
Low
6.5 – 7.0%
Tax-free
Fully repatriable
₹10,000
Government Bonds
Low-Moderate
7 – 8%
Tax-exempt for foreign investors
As per RBI norms
₹10,000
Corporate Bonds
Moderate
8 – 10%
Taxable as per slab
As per RBI norms
₹10,000+
Enquire About NRI Investment Updates
Common Questions
Frequently Asked Questions
What is the FCNR(B) swap window announced by RBI?
The RBI announced it would bear the entire foreign exchange hedging cost on fresh FCNR(B) deposits of 3–5 year tenors mobilised until September 30, 2026. This allows banks to offer significantly higher rates to NRIs.
Is FCNR(B) interest taxable in India?
No. Interest earned on FCNR(B) deposits is tax-free in India and fully repatriable.
Which FCNR(B) deposit gives the highest rate?
As of June 2026, Equitas SFB offers the highest rate at 7.13% for 3-5 year tenors, followed by AU Small Finance Bank at 7.1%.
How long is this window open?
The special window is open for deposits mobilised from June 8 to September 30, 2026. The swap window for banks closes on October 16, 2026.
What is the difference between NRE FD and FCNR(B) deposit?
NRE FDs are rupee-denominated and carry currency risk. FCNR(B) deposits are in foreign currency with no currency risk — principal and interest are returned in the same currency.
Can NRIs invest in government bonds?
Yes. NRIs can invest in government securities through the Fully Accessible Route (FAR) and benefit from the tax exemption on G-Sec interest.
Are there any lock-in requirements for FCNR(B) deposits?
Yes. FCNR(B) deposits under the special window have a 1-year lock-in period.