Your full guide to SBI FCNR account

State Bank of India (SBI) offers FCNR accounts for Indian citizens living abroad or OCI holders. It is a tax-free way to earn interest on foreign currency in India. Learn more about how an FCNR account at SBI works and how to open one.

Table of Contents
What is FCNR at SBI? How to open an FCNR account in SBI? Sending a money transfer Apply online At a bank branch What is the FCNR interest rate with SBI? Features and benefits of the SBI FCNR account Who can open an FCNR account SBI? Documents required to open an FCNR account in SBI Currencies available in SBI FCNR account Minimum deposit

What is FCNR at SBI?

An FCNR account is a Foreign Currency Non-Resident account. It is a one to five years fixed-term deposit that Non-Resident Indians can fund with foreign currencies, not Indian rupees. NRIs can find an FCNR account at many Indian banks, but SBI requires you to be an account holder first.¹

How to open an FCNR account in SBI?

First, to open an FCNR account at SBI, ensure your SBI accounts are in NRI status. Next, you have three different options on how to open an account:²

Sending a money transfer

One way to open an FCNR account at SBI is to transfer money directly to your local SBI branch. Although this is a simple option, it may take longer to process. You’ll need to provide details, and make sure you send the minimum deposit amount. Read section: How to transfer funds to an SBI FCNR account

Apply online

This option is likely the most convenient and direct. You can apply online through SBI Internet Banking through the following steps:

1. Login to SBI Online
2. Click on the tab “e-Services.”
3. On the screen's left side, click “NRI Services.”
4. Select “Inward Remittance Disposal Request”
5. Enter the details and complete the form
6. Click on Submit.

You can pay directly from an existing NRE or NRO account or transfer funds to complete the FCNR request.

At a bank branch

If you visit India, you can open an FCNR account at an SBI bank branch. You can go in person, complete the process and fund the account in person. Options for funding your account at a bank branch are later in this article.

In all cases, SBI customer service or a bank branch may contact you if additional details are required.

What is the FCNR interest rate with SBI?

The interest rate on an SBI FCNR account will depend on the account’s currency and how long it is held. Here are the current FCNR rates at SBI depending on the term length:³

Term deposit up to 1 year

	US Dollars	British pounds	Euros	Japanese Yen	Canadian dollars	Australian dollars
Up to 1 year	5.25%	4.50%	1.50%	0.02%	4.30%	3.60%

Term deposit of 1 year one day - 2 years

	US Dollars	British pounds	Euros	Japanese Yen	Canadian dollars	Australian dollars
One year 1 day - 2 years	5.25%	4.50%	1.50%	0.02%	4.30%	3.60%

Term deposit of 2 years one day - 3 years

	US Dollars	British pounds	Euros	Japanese Yen	Canadian dollars	Australian dollars
Two years 1 day - 3 years	4.20%	2.35%	1.50%	0.05%	4.10%	3.50%

Term deposit of 3 years one day - 4 years

	US Dollars	British pounds	Euros	Japanese Yen	Canadian dollars	Australian dollars
Three years 1 day - 4 years	4.05%	2.45%	1.50%	0.05%	3.85%	3.00%

Term deposit of 4 years one day - 5 years

	US Dollars	British pounds	Euros	Japanese Yen	Canadian dollars	Australian dollars
Four years 1 day - 5 years	4.10%	2.63%	1.50%	0.05%	3.70%	3.00%

Term deposit of 5 year

	US Dollars	British pounds	Euros	Japanese Yen	Canadian dollars	Australian dollars
Five years	4.15%	2.45%	1.50%	0.05%	3.97%	3.00%

effective: March 10, 2023, updated as of: March 29, 2023

To note:

• Rates are subject to change.
• No interest is paid if the funds are withdrawn within 12 months of opening.
• There is no penalty for closing the account early.

How to transfer funds to an SBI FCNR account?

There are a few different ways to transfer money to an SBI FCNR account:

• Send a money transfer to your SBI branch.
• Transfer from an existing FCNR account in India.
• Transfer from an existing NRE or NRO account in India.
• A personal check from a foreign account.
• Deposit foreign currency bills at a bank branch.

One of the simplest ways to fund an FCNR account is by sending a money transfer. You can do it through a wire transfer at your bank or with fast and easy-to-use transfer providers like Wise.

Fund your FCNR account with Wise

Wise is a great alternative that uses the mid-market exchange rate and just one fee on all transfers and can often be cheaper than a bank. On popular routes to India - like from the US or the UK- transfers can be deposited to a local account within seconds. So you can open up an FCNR account in no time.

And if you are an NRI or OCI living abroad in the US, UK, Australia, Singapore, or any other currently supported countries- check out the Wise multi-currency account. It is one single account that lets you hold, spend and send US dollars, British pounds, Euros, Indian Rupees, and more. The Wise multi-currency account is free to open and comes with a debit card that you can use globally. That means that the next time you are in India, you can spend and swipe like a local.

• Please see Terms of Use for your region or visit Wise Fees & Pricing for the most up-to-date pricing and fee information.
• The speed of transaction claim depends on funds availability, approval by Wise’s proprietary verification system and systems availability of our partners’ banking system, and may not be available for all transactions

Features and benefits of the SBI FCNR account

An SBI FCNR account has tax and interest rate benefits to NRIs and OCIs, along with other features. Here is a quick list of how an FCNR can help a non-resident:⁴

• Funded with foreign currency - This can protect an account holder from changes in the Indian Rupee exchange rate.
• Tax-free interest - Interest earned on an FCNR is not taxable in India.
• Benefit from high-interest rates - Interest rates on FCNR accounts may be higher than similar term deposits abroad.
• Repatriable - The principal and interest are fully transferable back to the NRI resident country without fees.
• Joint account- The FCNR account at SBI can be held jointly with a resident Indian as long as the NRI is the primary account holder.
• Loan - Account holders can take out a loan against their FCNR account.

Who can open an FCNR account SBI?

Only existing SBI account holders can open an FCNR account. To be eligible, you must be a Non-Resident of India (NRI) or an Overseas Citizen of India (OCI).

To qualify as a non-resident as an NRI or OCI, you must live more than 182 days outside India.⁵

There is an option for opening an FCNR account jointly, which can be with another NRI or a resident of India. Joint accounts with a resident Indian must have the NRI as the primary account holder.

Documents required to open an FCNR account in SBI

The document requirements are less when compared with other banks since you are required to be an account holder already when applying for an FCNR. But what you’ll need depends on how you apply.

You won’t need to provide documents if you apply through the SBI net banking portal.

If you are visiting India and opening an account at an SBI bank branch, you must complete and submit the Request for creation of NRE / NRO / FCNR (B) Deposit form. It is recommended to have your ID with you at submission.

If you are sending a money transfer from abroad to open an SBI FCNR account, you’ll have to write “Please create FCNR (B) deposit as per following details” in the transfer message and then include

• the deposit currency.
• The deposit amount.
• The requested deposit term.

Ensure you provide your details or account number so the account can be opened correctly. ⁶

Currencies available in SBI FCNR account

An SBI FCNR account can be held in six different currencies:⁷

• US dollars
• British pounds
• Euro
• Canadian dollars
• Japanese yen
• Australian dollars

All the currencies have term lengths from 1 - 5 years.

Minimum deposit

To open an FCNR account, SBI requires a minimum deposit in foreign currency:

Currency	Amount
US dollars	$1,000
British pounds	£1,000
Euros	€1,000
Canadian dollars	$1,000
Australian dollars	$1,000
Japanese yen	¥ 100,000

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Sources used for this article:

1. Eligibility For Account Opening - NRI
2. Open FCNRB account - NRI
3. SBI NRI Services - FCNR Deposit Interest Rate
4. Features - NRI
5. NRI definition
6. Open FCNRB Account - NRI
7. Currencies FCNRB Account - NRI

All sources checked as of 29 March, 2023.