New Delhi, July 9 -- The Reserve Bank of India's (RBI) swap window for fresh foreign currency non-resident (bank) or FCNR(B) deposits, till 30 September 2026, is a compelling opportunity for non-resident Indians (NRIs) and overseas citizens of India (OCIs).

Unlike a rupee deposit, both the principal and interest are repaid in the same foreign currency. This means the depositor does not bear the risk of rupee depreciation. The money remains fully repatriable, and, as long as the depositor continues to qualify as a non-resident under Indian tax laws, the interest earned remains tax-free in India.

That combination of high foreign exchange returns, no exchange-rate risk and tax-free interest in India makes the current window especially comp...