New Delhi: The Reserve Bank of India (RBI) has decided to continue the FCNR (B) incentive scheme, with no proposal to discontinue the facility ahead of its scheduled timeline, offering stability to banks and overseas Indian depositors.
RBI Governor Sanjay Malhotra said the central bank is not considering an early withdrawal of the scheme, which was introduced to encourage foreign currency deposits and support the country’s external financial stability.
The Foreign Currency Non-Resident (Bank) deposit scheme enables Non-Resident Indians (NRIs) to hold term deposits in foreign currencies with Indian banks. The scheme helps attract foreign currency resources while allowing depositors to reduce exposure to currency fluctuations.
The RBI’s decision to maintain the scheme comes at a time when global financial markets continue to face uncertainty, making stable foreign currency inflows an important part of economic management.
Banking experts said the continuation of the incentive structure could help improve liquidity, strengthen confidence among NRIs, and support India’s foreign exchange position.
The move reflects the central bank’s broader approach of maintaining financial stability while creating a supportive environment for economic growth and investment.
The RBI will continue to monitor market conditions and take policy decisions based on evolving economic and external sector developments.
