Why Canara Bank’s FCNR(B) Special Deposit Scheme is catching NRI attention
17.06.2026 - 17:29:51 | ad-hoc-news.de
Reviewed: ad hoc news Accessory & Components desk. Edited and checked on 2026-06-17, 17:28. Details in the imprint.
With the FCNR(B) Special Deposit Scheme, Canara Bank is dangling a quietly bold promise to NRIs who park their savings in dollars and other hard currencies - up to 6.50% interest on USD, capital in India, currency risk kept offshore.
Background on the Canara Bank stock
Canara Bank’s new FCNR(B) Special Deposit Scheme is one piece of a larger balance-sheet story that equity investors track closely.
What this NRI deposit really offers
At the heart of the FCNR(B) Special Deposit Scheme is a simple hook: fixed USD deposits earn up to 6.50% per annum, with tenors between three and five years and a one-year lock-in before any premature withdrawal is allowed.
The scheme is open not only for US dollars but also for pound sterling, euro and Australian dollar, giving globally mobile NRIs some welcome choice in how they park their foreign income.
How the structure feels in practice
In day-to-day life, the product feels like a hybrid between a term deposit and a foreign currency investment - you see a single line in your NRI banking app, but behind it sits a multi-year bet on interest rates and exchange levels.
The one-year lock-in is strict, so this is not a place for money that might be needed in a hurry for a property down payment or school fees back home.
Interest, tax and currency angle
Canara Bank pitches the FCNR(B) Special Deposit Scheme as a way to earn attractive rates while enjoying capital safety and certain tax advantages under Indian rules for NRI deposits.
Because the deposit is maintained in foreign currency, NRIs avoid the direct rupee depreciation risk on the principal, although converting interest or maturity proceeds into INR still brings the exchange rate back into play.
Who this scheme suits best
This scheme is tailored for NRIs who already hold stable foreign income in bank accounts abroad and want to diversify part of it into India without switching fully into rupees.
It suits planners more than traders: people comfortable committing funds for three to five years in exchange for visibility on returns and a recognized state-owned counterparty.
Where the limitations show
The fixed-rate nature means anyone locking in this week wins or loses depending on how global rates move over the coming years; the scheme is generous today, but less flexible if rate cycles turn again.
And while the bank highlights capital safety, depositors still carry the usual sovereign and banking-system risk of placing money with an Indian lender, even if it is a large public-sector bank.
Context, balance sheet and stock
Canara Bank is leaning more aggressively into NRI and foreign currency deposits, adding this FCNR(B) Special Deposit Scheme to a broader product suite across retail, corporate and digital channels to keep funding costs competitive.
Shares of Canara Bank (INE476A01014) trade on the NSE, where the stock was quoted at around ?135 per share during trading on 17 June 2026.
Key facts on Canara Bank’s FCNR(B) Special Deposit Scheme
- Product: FCNR(B) Special Deposit Scheme
- Manufacturer: Canara Bank Ltd.
- Category: Accessory/Spare part - banking deposit product
- Launch: June 2026
- RRP / Price: Up to 6.50% p.a. interest on USD deposits (3-5 year tenor)
- Availability: Offered to eligible Non-Resident Indians via Canara Bank’s NRI branches and online channels
- Target group: NRIs with foreign currency savings seeking fixed returns in a regulated Indian bank
- Highlight / USP: High USD interest rates with foreign-currency denomination and a one-year minimum lock-in
This article was AI-assisted and editorially reviewed. Product information without guarantee; prices and availability may change at short notice. No investment advice, no buy or sell recommendation. Stock-market transactions involve risks up to total loss.
