FCNR (B) FD premature withdrawal rules: Check penalty and interest rate rules of HDFC Bank, SBI, ICICI Bank, Axis Bank, Kotak Mahindra Bank

Foreign Currency Non-Resident (Bank) deposits, or FCNR (B) deposits, is a popular investment option among Non-resident Indians (NRIs) who want to keep their foreign earnings in a foreign currency in India while earning stable returns. FCNR (B) has been under the spotlight ever since the government said that it would bear the hedging costs on 3 to 5-year deposits till September 30, 2026. However, if an investor withdraws their deposit prematurely, there may be penalties.

Premature withdrawal of FCNR (B) deposits

FCNR (B) deposits can be withdrawn before the maturity date, subject to the bank’s applicable rules and penalty. Check premature FCNR (B) withdrawal rules of HDFC Bank, SBI, ICICI Bank, Axis Bank and Kotak Mahindra Bank. Information related to premature withdrawal rules has been taken from the banks’ respective official websites.

HDFC Bank FCNR (B) premature withdrawal rules

Foreign Currency Non Resident (FCNR) special deposits booked for 3 to 5 years tenure will have a lock-in period of 1 year. This will be applicable to deposits booked between June 10, 2026, to September 30, 2026.


For HDFC Bank FCNR (B) customers (regular), no interest will be paid if the FCNR (B) deposit is prematurely withdrawn before 1 year. No penalty will be levied on the premature closure of FCNR fixed deposits. The minimum maturity remains 1 year. The maximum maturity remains 5 years.


Note that FCNR(B) deposits can be accepted or renewed beyond five years.

SBI FCNR premature withdrawal rules

For SBI FCNR (B) advantage deposit customers, no premature withdrawal is permitted under the scheme for a period of 1 year from the date of the opening of an FCNR(B) deposit account.


In case of premature withdrawal after 1 year and before 3 years, interest will be payable at 3.50% for the period deposit has run with the bank.


In case of premature withdrawal between 3 years to less than 5 years, interest will be payable at 1% lower than the rate of interest applicable for the period the deposit has run with the bank.


For regular FCNR (B) deposits, no interest is payable if the deposit is withdrawn before one year. If the deposit is withdrawn after one year, there is no premature withdrawal penalty. However, the interest paid will be the lowest of:
The contracted interest rate;
The rate applicable when the deposit was opened, for the period it was held; or
The current interest rate for the period the deposit was held.


ICICI Bank FCNR (B) premature withdrawal rules

For FCNR (B) deposits with original tenor of 12 months to < 36 months:
Before completion of 12 months: No interest will be payable and no penalty will be levied.
After completion of 12 months: On the premature withdrawal of the deposit, interest shall be paid at the rate applicable, on the date of deposit booking, to the amount and period for which the deposit remained with the bank and no penalty will be levied.
FCNR (B) deposits with original tenor of more than or equal to 36 months to <= 60 months:
Deposits shall be subject to a lock-in period of 12 months
If such a deposit is prematurely withdrawn after the completion of the lock-in period, including partial withdrawal, interest will be paid at the rate applicable, on the date of deposit booking, to the amount and period for which the deposit remained with the bank, less 1% penalty.

Axis Bank FCNR (B) premature withdrawal rules



In case an FCNR (B) deposit is prematurely closed before the completion of a minimum period of 1 year, no interest will be payable on such deposits. The premature closure of FCNR (B) after 1 year will attract a 1% penalty for deposits above USD 1 million.


Bank of Baroda FCNR (B) premature withdrawal rules

bob Legend FCNR(B) deposit customers will have a lock-in period of one year. For other FCNR (B) deposits, the rate of interest applicable in the case of FCNR (B) deposits will be one 1% less than the actual interest payable for the period provided the deposit has run for a minimum period of one year.


No interest will be paid on the premature withdrawal of deposit within 12 months from the date of deposit.