New Delhi, March 30 -- The Indian rupee generally depreciates against the US dollar in the long run due to inflation differentials, among other factors. This persistent depreciation means that foreign currency-denominated investments often deliver higher returns in rupee terms over time.

Apart from real estate and Indian equity investments, FCNR (Foreign Currency Non-Resident) accounts offer a safe and liquid investment option for NRIs. The Foreign Exchange Management Act (FEMA) allows non-residents to maintain bank accounts in permitted foreign currencies, known as FCNR accounts. Let us look at their key features.

An FCNR account can be opened only as a fixed deposit, not as a current or savings account, unlike NRE and NRO accounts. St...