FCNR(B), which stands for Non-Resident (Bank) Foreign Currency Deposit, allows eligible NRIs to place deposits with Indian banks holding both principal and interest in foreign currency. Unlike traditional rupee deposits, investors are not exposed to the risk of rupee depreciation because their money remains in dollars, pounds sterling or other approved foreign currencies throughout the tenure of the deposit. Unlike traditional rupee deposits, investors are not exposed to the risk of rupee devaluation because their funds remain denominated in dollars, sterling or other approved foreign currencies throughout the duration of the deposit.
