FCNR (B) Accounts

Eligibility

• Non-Resident Indians / Persons of Indian Origin

Benefits

• No Exchange loss to the customers as interest and principal amounts are payable in the same currency in which it is deposited.
• Loan is available against the deposit as per extant RBI guidelines from time to time. Currently loans are available to the extent of Balance available subject to margin requirements . The facility of premature withdrawal shall not be available where loan against such deposits are to be availed of.
• Nomination facility is available. – – Nominee can either be a resident in India or a resident outside India.

Type of account

• FDR / MMD

Tax Benefit

• Interest earned on these accounts is free from income tax.
• Funds invested in FCNR accounts by Non-Residents are free from Wealth Tax.

Salient Features

• Accounts can be opened jointly with other Non-Resident Indians.
• Deposits can be made by remittances from abroad or by transfer of funds from existing NRE accounts of the customer.
• Joint accounts with resident Indians who are close relatives (as defined in Section 6 of Companies Act, 1956) of the NRI are permitted only on Former (NRI) or Survivor (resident) basis
• Deposits can be opened in any one of the foreign currencies viz.,US Dollar USD,  Euro EUR, Pound Sterling GBP, Australian Dollar AUD, Canadian Dollar CAD, Japanese Yen JPY, Swiss Franc CHF and Singapore Dollar SGD.
• Deposit accounts cannot be opened/closed by a power of attorney holder.

Min Amt

• No such stipulation

Max Amt

• No such stipulation

Min Period

• 1 year

Max Period

• 5 years