What are FCNR (B) and NRE term deposits?

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Direct Answer
FCNR (B) and NRE term deposits are foreign currency and external rupee accounts maintained by Non-Resident Indians. The RBI mandates specific reserve and PSL requirements against bank liabilities
Deposit Type PSL Norm Applicability Impact on Banks
Domestic / Resident Deposits Fully subject to PSL targets 40% to 75% must be routed to PSL
Fresh FCNR(B) & NRE Term Deposits Exempted from PSL (Aug 2026) 100% can be used for commercial lending