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FCNR(B) Deposit Master Circular 2011: Key Updates

No longer current — withdrawn, no replacement on file yet
Source: Reserve Bank of India · RBI/2011-12/51 · issued 01 Jul 2011 · ~2 min read
Quick answerRBI issued the updated Master Circular for FCNR(B) deposits, consolidating all instructions up to June 30, 2011. This replaces the July 2010 circular and covers interest rates, premature withdrawals, advances, and conversion rules for returning NRIs. Banks must align their FCNR(B) operations with this latest compilation.

What changed

The 2011 Master Circular updates the previous 2010 version by incorporating all instructions issued up to June 30, 2011. It consolidates guidelines on FCNR(B) deposits, including interest rate directives, premature withdrawal rules, and conversion procedures for returning Indians. The circular applies to all scheduled commercial banks except Regional Rural Banks.

What it means for you

Banks must ensure their FCNR(B) deposit policies and practices are fully aligned with the updated circular. This includes adhering to prescribed interest rate ceilings, handling premature withdrawals correctly, and following the specified conversion rules for NRIs returning to India. Non-compliance could lead to regulatory action, so treasury and NRI banking teams need to review and update internal processes.

Historical instruction — do not use for current compliance. This is what was required at the time; it no longer reflects current RBI requirements. If no replacement rule is linked above, that only means none is recorded on our register yet — it does not prove no later applicable rule exists. Confirm on the official RBI source below.

What banks were required to do at the time

Who it affects

All scheduled commercial banks (excluding RRBs) offering FCNR(B) accounts, NRI banking departments, Treasury and compliance teams, Retail banking operations handling foreign currency deposits

❓ Common questions

Regulatory timeline

Built from our lineage records — each fact carries its provenance; missing history simply is not shown (never guessed).

Does this circular change interest rates on FCNR(B) deposits?

The circular consolidates existing interest rate directives; it does not introduce new rates. Banks must refer to Annex 1 for the applicable interest rate structure as per RBI guidelines.

Are Regional Rural Banks covered by this Master Circular?

No, the circular explicitly excludes Regional Rural Banks (RRBs) from its application.

What happens to FCNR(B) accounts when an NRI returns to India permanently?

The circular provides guidelines for converting FCNR(B) accounts into RFC or resident rupee accounts, including waiver of penalty and interest payment rules. Banks must follow these procedures as specified.

📜 This document’s life story (1 recorded event, each backed by RBI’s own words)
Repealed by RBI/2025-26/100 — Consolidation of Regulations — Withdrawal of circulars (28 Nov 2025)
RBI’s words: “Official withdrawal register entry #1467: DBOD.No.Dir.BC.10/13.03.00/2011-12 — "Master Circular of Instructions relating to Deposits held in FCNR(B) Accounts" dated July 1, 2011”
📜 Read the original circular — full text as issued by RBI
RBI/2011-12/51 DBOD.No.Dir.BC. 10/13.03.00/2011-12   July 1, 2011 Ashadha  10, 1933 (Saka) All Scheduled Commercial Banks (excluding RRBs) Dear Sir / Madam Master Circular of instructions relating to deposits held in FCNR(B) Accounts Please refer to the Master Circular DBOD No. Dir. BC.11/13.03.00/2010-11 dated July 1, 2010 consolidating the instructions/guidelines issued to banks till June 30, 2010 relating to deposits held in FCNR(B) Accounts. The Master Circular has been suitably updated by incorporating the instructions issued up to June 30, 2011 and has been placed on the RBI website ( http://www.rbi.org.in ).   A copy of the Master Circular is enclosed. Yours faithfully (P.R.Ravi Mohan) Chief General Manager Encl: as above CONTENTS Para No.
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2011-12/51 · issued 01 Jul 2011. The plain-English explanation above is BankPulse’s own independent summary.
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BankPulse Compliance Evidence Pack — generated 03 Aug 2026 · status cross-checked against RBI’s official withdrawal register (refreshed weekly).
Official RBI source: https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=6509&Mode=0 — Plain-English summary by BankPulse (bankpulse.ai), reviewed by our expert reviewer, CA Amit Jain. Independent platform, not affiliated with the Reserve Bank of India; is our own plain-English paraphrase, not RBI’s original wording.
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