Bank of Baroda has introduced a new Foreign Currency Non‑Resident (FCNR (B)) Deposit Scheme offering attractive interest rates to Non-Resident Indians (NRIs). This is in line with the Reserve Bank of India’s recent measures aimed at encouraging foreign currency inflows into the country, strengthening India’s external reserves, and providing NRIs with secure investment opportunities.
The FCNR (B) scheme allows NRIs to deposit in foreign currencies such as USD, GBP, EUR, JPY and others, with tenures ranging from one to five years. The deposits earn interest at competitive rates, benchmarked against international ones and are fully repatriable. The principal and interest are also exempt from Indian income tax, making the scheme highly attractive for foreign investors who want to earn safe and tax-effective returns.
Bank of Baroda has said that the new scheme is meant to provide NRIs with a stable investment option in the face of global economic uncertainty. Higher interest rates than previously offered FCNR (B) products will help to attract a larger share of foreign currency deposits and contribute to India’s financial stability.
The move also reflects the RBI’s broader strategy to boost foreign exchange reserves and manage currency volatility. In recent months, the central bank has encouraged Indian banks to mobilize foreign currency deposits by offering more flexibility in interest rates and tenures. Bank of Baroda’s new scheme is among the first major responses to this policy push, signaling strong alignment between the banking sector and regulatory objectives.
There are several advantages for NRIs; this scheme is an investment option to NRIs that is risk‑free, backed by one of India's leading public sector banks and also protects against exchange rate fluctuations since deposits are held in foreign currency.
The scheme also supports NRIs in diversifying their investment portfolio and long‑term financial planning. The launch of the FCNR (B) Deposit Scheme by the Bank of Baroda is a significant step in making foreign currency flows more attractive to the Indian economy. With high interest rates, tax exemptions, and full repatriability benefits, the scheme will benefit NRIs and will help to put India’s external financial situation right in the limelight.
