New Delhi, June 17 -- Of late, Foreign Currency Non-Resident (Bank) [FCNR (B)] deposits have emerged as a highly favoured investment avenue for Non-Resident Indians (NRIs) who want to generate foreign currency returns while entirely bypassing long-term exchange-rate risks. Nevertheless, the net tax efficiency of these specific deposits shifts dramatically based on where the NRI resides, rendering them far more lucrative for certain individuals than others.

An FCNR account functions as a foreign currency-denominated repository that allows Non-Resident Indians or Persons of Indian Origin (PIOs) to hold their funds securely. FCNRs operate identically to the fixed deposits (FDs) utilised by resident Indians, with the sole distinction being t...