How to Fund a Kotak FCNR Deposit
Kotak books an FCNR deposit from three things arriving together: your USD transfer, the words “FCNR Deposit” in the comments field, and a signed form sent to [email protected].
Key Takeaways
• Kotak’s process relies on a paper form rather than fields inside the payment message itself, so the steps look different from a bank that automates the matching.
• You use your existing Kotak NRE account and SWIFT code KKBKINBB — no new account is needed.
• The comments field must read “FCNR Deposit,” and a signed form must go to [email protected] alongside the transfer.
• None of this changes by country — what differs is your own tax reporting on the interest.
Kotak’s process relies on a paper form rather than fields inside the payment message itself — that’s not a drawback, it just means the steps look different from a bank that automates the matching. None of this changes based on which country you’re sending from.
What Kotak needs to book your FCNR deposit
Kotak’s FCNR funding process has three parts, and all three matter — missing any one of them is the most common reason these deposits get delayed:
- Remit in USD, to your existing Kotak NRE account. Kotak has confirmed the account number for this is the same NRE account number you already use for regular remittances — you don’t need a separate account number for FCNR funding. The transfer needs to go to Kotak using SWIFT code KKBKINBB, and it needs to stay in USD; Kotak has specifically asked that the remittance not be converted to another currency before it arrives.
- Mark the transfer for FCNR in the comments field. In the comments or description field of your remittance instruction, write “FCNR Deposit.” Kotak uses this field to identify that incoming funds are meant for an FCNR booking rather than a standard NRE credit — without it, there’s no automatic signal to Kotak that this transfer is different from your usual remittance.
- Submit the FCNR deposit form separately. Kotak requires a completed and signed FCNR deposit form sent to [email protected], with your relationship manager or point of contact copied. This form runs alongside the money transfer, not instead of it — sending the funds without the form, or the form without the funds, isn’t enough on its own.
Send the form and the transfer close together
Because Kotak’s process depends on a manually reviewed form rather than fields embedded in the payment message, timing your form submission close to your transfer date reduces the chance of your funds sitting in your NRE account, unbooked, while the form is still in someone’s inbox. Sending the form the same day you initiate the transfer — rather than days later — gives Kotak’s team the clearest signal to act on both together.
What happens after Kotak receives your transfer and form
Once Kotak receives both the funds (via SWIFT code KKBKINBB, marked “FCNR Deposit”) and your signed form at [email protected], their NRI banking team takes it from there. If anything is missing or unclear, Kotak has said they’ll reach out directly — but from your side, the two things you control are getting the comments field right on the transfer, and getting the form in promptly.
Does the transfer provider you use change anything?
None of Kotak’s requirements above depend on which service carries your USD to India — the SWIFT code, the comments field, and the form all apply the same way whether you wire directly from your own bank or use a remittance provider. The main thing to check with whichever service you choose is that it actually lets you set a custom comments or description field on the transfer, since that’s what carries the “FCNR Deposit” flag.
Fintech remittance services such as Instarem let you set a custom comments field the same way a bank wire does, and typically publish their FX margin upfront rather than folding it into the rate — a choice about cost and convenience, not something Kotak requires.
Funding this deposit from Singapore, the US, the UK, or Australia? Instarem lets you set the “FCNR Deposit” comments field Kotak needs and shows the FX margin upfront, so there’s no guesswork on cost. Send your FCNR funding transfer via Instarem
Where you’re sending from: what changes by country
The bank’s requirements above don’t change by country — but what you may owe your own tax authority on the interest this deposit earns does. None of the following is tax advice; it’s a starting point for a conversation with an accountant or tax advisor who knows your specific residency situation.
| Country | Tax treatment of FCNR interest | Reporting to know about |
|---|---|---|
| Singapore | Generally exempt for individuals, remitted or not (IRAS territorial system) | No personal FBAR-style filing; confirm case-specific treatment with an advisor if unsure |
| United States | Taxable — US residents are taxed on worldwide income | FBAR (FinCEN 114) once foreign accounts exceed US$10,000 combined; Form 8938 may also apply |
| United Kingdom | Taxable on an arising basis for most UK residents since 6 April 2025 (FIG regime) | Declared via SA106; new residents may claim a 4-year exemption, but only by active claim |
| Australia | Taxable — Australian tax residents are taxed on worldwide income | No separate personal filing, but ATO receives account data via CRS from 120+ countries |
Sending from Singapore
Foreign-sourced income received by an individual — including FCNR interest held in India — is generally exempt from Singapore tax under IRAS’s rules for individuals, whether or not it’s later remitted into Singapore.
- This is a general exemption for individuals, not a case-by-case ruling — but your specific facts can still affect the outcome, so confirm with a tax advisor if you’re unsure.
- Make sure your transfer stays in USD rather than getting converted at your sending bank before it leaves Singapore.
- Make sure the SWIFT/BIC on the transfer reflects a Singapore-based sending bank — that’s what the receiving Indian bank uses to confirm your country of residence.
Haven’t opened your FCNR account yet? See How to Open an FCNR Account From Singapore first.
Sending from the US
The US taxes residents — including green card holders and anyone who meets the substantial presence test — on worldwide income, so FCNR interest can need to be reported even though it’s tax-exempt in India.
- FBAR (FinCEN Form 114) applies once the combined value of all your foreign financial accounts — not just this one — exceeds US$10,000 at any point in the year.
- Form 8938 may also apply, depending on your filing status and total foreign asset value — separate from, and in addition to, reporting the interest as income.
- Funds sent from a US bank are already in USD, so there’s no currency-conversion step to double-check the way there sometimes is from Singapore.
- Confirm your specific FBAR/FATCA obligations with a CPA who handles NRI or cross-border US filings — enforcement data-matching has tightened, so this isn’t one to guess on.
Sending from the UK
From 6 April 2025, the UK replaced the old non-dom remittance basis with a residence-based Foreign Income and Gains (FIG) regime.
- Most UK tax residents now report worldwide income — including FCNR interest — on an arising basis via the SA106 form, whether or not it’s brought into the UK.
- New UK residents who haven’t been UK tax resident in the prior ten years may qualify for a 4-year exemption on foreign income and gains — but only by making an active claim, not automatically.
- Foreign interest counts toward your Personal Savings Allowance and must be declared even where Indian tax has already been withheld at source.
- These rules changed recently — check your own FIG regime eligibility with an accountant rather than assuming last year’s treatment still applies.
Sending from Australia
Australian tax residents are taxed on worldwide income, including interest from a foreign bank account such as an FCNR deposit, whether or not it’s brought into Australia.
- The ATO receives account data from over 120 countries, including India, through the OECD’s Common Reporting Standard, and matches it against lodged returns.
- What determines whether this applies to you is tax residency, not citizenship — a foreign resident for Australian tax purposes generally doesn’t need to declare this interest, while an Australian tax resident does.
- Residency determinations can be genuinely borderline in the first year or two after moving — a registered tax agent can confirm your status if you’re not sure.
Frequently Asked Questions
Why send your FCNR funding transfer via Instarem
A few things worth knowing about Instarem if you’re comparing it against your bank’s wire transfer for this deposit:
- FX margin shown upfront — Instarem displays its exchange rate and fee before you confirm the transfer, so you know the total cost in advance rather than finding out after the money’s already sent.
- Transparent charges — the rate and fee you see at checkout is what you pay; there’s no separate wire fee layered on afterward the way some bank transfers work.
- Covers all four corridors in this guide — Instarem supports sending from SGD, USD, GBP, and AUD directly to an Indian bank account, so the same account works whether you’re in Singapore, the US, the UK, or Australia.
- Regulated across multiple jurisdictions — Instarem operates under financial licenses in the markets it serves, rather than as an unregulated remittance app.
- Rewards on transfers — eligible transfers earn InstaPoints, redeemable for money transfer discounts or rewards, on top of whatever the FX rates and low fees already save you.
Rates and fees vary by corridor and change with market conditions, so check Instarem’s live calculator for your specific transfer amount before you send — the points above are about how the pricing is structured and disclosed, not a quote for your transfer.
Related reading:
What Is an FCNR Deposit? A Guide for NRIs ·
FCNR vs NRE FD: Which Is Better for NRIs? ·
How to Send USD to India for an FCNR Deposit ·
How to Fund an HDFC FCNR Deposit
Ready to fund your Kotak FCNR deposit? Start your transfer with Instarem
