Canara Bank has come out with new FCNR (B) Special Deposit Scheme for Non-Resident Indians ( NRIs ),and honestly,this looks like one of those banking moves aimed directly at people earning abroad but still wanting safe India-linked option .
The scheme was announced on June 18, 2026 . And bigger picture here is also clear,it is part of Reserve Bank of India's push to bring more foreign currency inflows into country.
Under this special scheme,NRIs can park money in foreign currencies like U.S. Dollar,British Pound Sterling,Euro,Canadian Dollar,and Australian Dollar . Interest rates go up to 6.50% per annum,which is not small thing ah,especially when people are looking for safer savings route.
Tenure options are also not too complicated . Customers can choose from 3 to 5 years,depending on their own financial plans and how long they want money to stay invested.
Few things standing out in this scheme:
- Interest rates go up to 6.50% per annum on foreign currency deposits.
- Flexible tenure options are from 3 to 5 years .
- Interest earned from FCNR (B) deposits is exempt from tax in India.
Another point NRIs may like is that both principal amount and interest can be transferred abroad without restrictions . That gives bit more control,instead of feeling money is locked in one place only.
There is also loan facility available against FCNR (B) deposits,which makes scheme more useful for people who may need liquidity later without breaking deposit immediately . Small detail,but for many families,this matters.
Bhavendra Kumar,Executive Director of Canara Bank,said scheme has been carefully crafted to meet needs of NRI customers and help them maximize financial returns while investing in India . Fair enough,but customers will still compare it with other banks and global options before jumping in.
And tbh,timing is interesting because many NRIs are again looking at ways to put money back home without taking too much risk . Whether this scheme actually pulls big NRI money or just becomes another bank product people notice and forget…that question is still hanging.
