PNB Highlights Competitive FCNR(B) Deposits for NRI Savers

Punjab National Bank (PNB) has highlighted its Foreign Currency Non-Resident (Bank), or FCNR(B), deposits as a suitable option for NRI savers. These deposits allow NRIs to invest in six currencies: US dollars, pounds, euros, Canadian dollars, Australian dollars, and Japanese yen.

The principal and interest of FCNR(B) deposits remain denominated in the chosen foreign currency, reducing exposure to fluctuations between the foreign currency and the rupee. PNB offers competitive interest rates on its FCNR(B) deposits, with US dollar and British pound deposits earning up to 6.60 per cent per annum for a five-year tenure.

FCNR(B) deposits offer full repatriability of both principal and interest, allowing NRIs to move their funds abroad according to applicable regulations. PNB also provides the facility of loans or overdrafts against FCNR(B) deposits, enabling customers to meet short-term financial requirements without prematurely breaking their deposit.

The tax treatment of FCNR(B) deposits is another consideration, with interest earned on these deposits generally exempt from Indian income tax for eligible NRIs, subject to prevailing tax laws and the customer's residential status.