Non-resident Indians like to play it safe. According to data obtained from the NRI Institute, they prefer investment in Foreign Currency (Non-Resident) Accounts (Banks) Scheme (FCNRB) over portfolio investment for its various benefits.

FCNR(B) accounts are foreign currency accounts and can be opened by NRIs and overseas corporate bodies (OCBs) in notified currencies without regulatory approvals.

Under the FCNR(B) scheme, NRIs can avail of loans and overdraft facilities against security of FCNR(B) deposits without any limits, for purposes other than investment. Moreover, these deposits are income tax free in the hands of the NRI until the person's maintains the non-resident status.