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FCNR Accounts


Foreign Currency Non Resident (FCNR) Accounts are opened for Non Resident Indians. A Non Resident Indian (NRI) is an Indian citizen or foreign national of Indian origin resident outside India for purposes of employment, carrying on business or vocation in circumstances as would indicate an intention to stay outside India for an indefinite period. A person of Indian origin (PIO) is a citizen of any country other than Pakistan, Bangladesh or Sri Lanka, who

Salient features FCNR Accounts

Eligibility

Persons of Indian nationality or origin residing abroad.

Accounts can be opened in single name or in joint names with another non resident Indian.

Requirements

Duly filled in Account Opening form with

Types of Account

Term / Fixed Deposit Accounts

Maturity period

1 year to 5 years

Currency of account

Accounts can be opened in US Dollars, Euros, Sterling Pounds, Canadian Dollars, Australian Dollars and Japanese Yen.

Exchange Risk

As the account is maintained in foreign currency, the exchange risk is born by the bank.

Credits in account

Credits in the accounts can be made by: If credits are received in a currency other than the currency of the account, the amount is converted into the currency of the account at prevailing exchange rates.

Payments/ Transfers from account

Payments/transfers from the accounts can be made by:

Account Operation

By account holder(s)

Interest rate

Interest rates are different for different currencies and different maturities.

Interest rates also vary from bank to bank.

Interest is applied in these accounts at half-yearly intervals

The interest may be paid either in lump sum at the time of maturity or it may be paid half-yearly as opted by the depositor.

Nomination facility

Available

Nomination can also be made in favour of resident Indians.

Transferability

Allowed from one branch of the issuing bank to another.

Premature Encashment

No interest is paid if the account is closed before completion of one year.

Premature payments after completion of one year attract some interest penalty.

Interest Taxability

Exempted from Income Tax in India.

Auto Renewal

The facility of auto renewal of deposits is available from banks.

Change of Status from Non-Resident to Resident

Other features

The balances in FCNR accounts are free of Wealth-tax.

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Updated : Feb 05, 2019