Can OCI cardholders open an FCNR account?

I would look at FCNR mainly if your objective is holding a foreign-currency deposit in India.

I live in Australia and became an OCI holder after getting Australian citizenship. I originally thought FCNR was just another version of an NRE account, but there is an important difference: FCNR(B) deposits are maintained in permitted foreign currencies, while NRE accounts are rupee accounts.

That made the decision clearer for me.

I wouldn't say FCNR is automatically better than NRE. If you expect to use the money for expenses in India, converting it to INR and using an NRE account may be more practical. If you want to retain the foreign-currency denomination of the deposit, FCNR may be worth considering.

Also, don't assume your old resident savings account is automatically fine just because you now have an OCI card. I had my existing account reviewed by my bank after my status changed.

The RBI rules should be checked before applying because individual circumstances and bank procedures can differ.

Yes, an OCI holder living outside India can generally be eligible for an FCNR(B) account.

I initially had the same concern because every bank page seemed to say “NRI FCNR account.” But the RBI framework separately includes OCI cardholders residing outside India within the PIO category.

In my case, the bank explained that FCNR is basically a deposit option rather than a replacement for every other Indian bank account. I still needed an account for my regular rupee transactions.

That distinction is important. If you're receiving or spending money in India regularly, an NRO or NRE account may be relevant alongside an FCNR deposit, depending on your circumstances.

FCNR made more sense for me for money I wanted to keep in foreign currency for a period rather than convert immediately to INR.

The bank's current rules on currencies, tenure, interest and KYC are worth checking because those details can vary and may change over time.

I had a similar situation after becoming a British citizen and getting my OCI card.

The main thing that helped was understanding that the RBI terminology isn't simply “Indian citizen living abroad.” RBI's current FAQ says that a PIO includes an OCI cardholder who is resident outside India. It also lists FCNR(B) as one of the major accounts that can be opened by non-residents.

I eventually discussed an FCNR deposit with my bank's NRI team. They checked my foreign passport, OCI details and overseas residence as part of their KYC process.

For me, the biggest attraction was keeping the deposit in a foreign currency instead of converting the funds into rupees immediately. Whether that makes sense depends on what you're trying to do with the money.

I wouldn't choose FCNR just because you're an OCI holder, though. NRE, NRO and FCNR accounts have different purposes, so I think it's better to compare them based on where your money comes from and how you expect to use it in India.