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FCNR(B) Deposit Master Circular 2013: Key Updates

No longer current — withdrawn, no replacement on file yet

Source: Reserve Bank of India · RBI/2013-14/74 · issued FY 2013-14 · ~2 min read

Quick answerRBI issued a consolidated Master Circular on FCNR(B) deposits, updating all instructions issued up to June 30, 2013. It covers interest rates, premature withdrawal, advances against deposits, and conversion rules for returning NRIs. Banks must align their FCNR(B) operations with this circular.

What changed

This Master Circular replaces the July 2, 2012 version and incorporates all FCNR(B) related instructions issued up to June 30, 2013. It consolidates guidelines on interest rates, premature withdrawal, and conversion of accounts for returning Indians. The circular applies to all scheduled commercial banks except RRBs.

What it means for you

Banks must ensure their FCNR(B) deposit products comply with the updated guidelines, including interest rate caps and operational rules. The circular clarifies procedures for premature withdrawal, interest on overdue deposits, and advances against FCNR(B) deposits. It also provides clarity on conversion of accounts for NRIs returning to India, impacting customer service and compliance.

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

Review and update internal FCNR(B) deposit policies to align with the 2013 Master Circular.
Train staff on revised interest rate guidelines, premature withdrawal rules, and conversion procedures.
Ensure systems correctly handle interest calculation for overdue deposits and advances against FCNR(B) deposits.
Update customer communication materials to reflect the latest FCNR(B) terms and conditions.

Who it affects

All scheduled commercial banks (excluding RRBs), NRI customers holding FCNR(B) accounts, Bank staff handling foreign currency deposits and advances

❓ Common questions

Regulatory timeline

Decoded by BankPulse 2026-06-18 14:43 IST
repealed_by — Consolidation of Regulations — Withdrawal of circulars (28 Nov 2025)
Status change: withdrawn 03 Aug 2026, 04:00 IST

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

What is the minimum maturity period for FCNR(B) deposits under this circular?

The minimum maturity period is one year, effective from October 1999, as mentioned in the circular.

Can banks pay additional interest on FCNR(B) deposits of their staff?

Yes, banks have discretion to pay additional interest on deposits of their staff, as per the guidelines in the circular.

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

The circular provides guidelines for converting FCNR(B) accounts into RFC accounts or resident rupee accounts, with possible waiver of penalty and interest payment rules.

📜 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 #1094: DBOD.No.Dir.BC.11/13.03.00/2013-14 — "Master Circular of Instructions Relating to Deposits held in FCNR(B) Accounts" dated July 1, 2013”

📜 Read the original circular — full text as issued by RBI

RBI/2013-14/74
 DBOD.No.Dir.BC. 11 /13.03.00/2013-14
 July 1 , 2013
 Ashadha 10, 1935 (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.8/ 13.03.00/2012-13 dated July 2, 2012 consolidating the instructions/guidelines issued to banks till June 30, 2012 relating to deposits held in FCNR(B) Accounts. The Master Circular has been suitably updated by incorporating the instructions issued up to June 30, 2013 and has been placed on the RBI website ( http://www.rbi.org.in ). A copy of the Master Circular is enclosed.
 Yours faithfully
 (Prakash Chandra Sahoo)
 Chief General Manager
 Encl: as above
 CONTENTS 
 Para No.

Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2013-14/74 · issued FY 2013-14. 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=8120&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.