The Reserve Bank of India (RBI) just announced a temporary program that may create additional opportunities for eligible NRIs and persons of Indian origin to place foreign currency deposits with participating financial institutions in India. Active from June 8th to September 30th, 2026, this temporary measure affects the terms available on certain foreign currency deposit arrangements offered by participating financial institutions.
Below is a high-level overview of participation options that may be available during this window.
Available Participation Options
Option 1: Simple FCNR Deposit
This mechanism consists of a foreign currency term deposit arrangement available to eligible non-resident individuals through participating financial institutions. Funds are placed directly into an FCNR account with an Indian commercial bank, offering optimized yield rates depending on the chosen institution. Under the existing regulatory frameworks, interest income remains entirely tax-exempt in India, and both principal and yields are fully repatriable abroad upon maturity. Currency availability remains subject to individual financial institution offerings.
Option 2: SBLC-related arrangement
This option allows investors to multiply their deposit size by combining personal capital with an overseas bank loan, secured through a Standby Letter of Credit issued by the Indian bank.
This arrangement may be available through participating financial institutions, subject to eligibility and approval. Structure and eligibility requirements vary by participating financial institution. Please refer to the relevant financial institution for complete details regarding any SBLC-related arrangement. Potential benefits, costs and risks depend on the specific arrangement and participating financial institution. Availability may vary depending on the participating financial institution and arrangement.
Key Conditions & Eligibility
To access these exclusive terms, investors must meet specific criteria. Participation is available only to eligible individuals, subject to applicable requirements, that creates or renew their deposits between June 8 and September 30, 2026. This scheme also requires a fixed maturity period between 3 and 5 years and a mandatory 1-year minimum lock-in, applied from the date of creation.
Additional conditions and restrictions may apply. Please refer to RBI official website and to the participating financial institution for complete terms and conditions.
If you plan to send money from abroad to India, managing exchange rates and transfer costs is an important consideration. Fluctuations in foreign exchange rates can alter the final value of your initial deposit amount.
Using international money transfer services like Western Union allows you to review live exchange rates and calculate transfer fees beforehand. Checking your options before moving large sums ensures you have an upfront view of the final amount that will arrive in your Indian account.
Frequently asked questions
Where can I find information on eligibility, currencies and participation requirements?
Please refer to the participating financial institution for complete information on available arrangements, eligibility requirements, currencies and other applicable terms.
How is tax treatment determined?
Tax treatment depends on individual circumstances and applicable laws. Customers should consult their financial institution and/or tax adviser regarding their specific situation.
Are there restrictions on transferring funds?
The ability to transfer funds is subject to applicable laws, regulations and financial institution requirements. Customers should review the applicable terms with the relevant financial institution.
Western Union provides money transfer services only and does not provide investment, lending, financial or tax advice. Western Union does not endorse or recommend any specific deposit, investment or lending product. Rates, eligibility requirements, tax treatment, terms, conditions and risks are determined by participating financial institutions.
