Foreign Currency (Non Resident) Account (Banks) scheme - FCNR (B) Accounts:

Non Resident Indians (NRIs) and Persons of Indian Origin (PIOs) are permitted to open and Maintain these accounts.

Features:

• The account can be maintained only in the form of fixed deposits.
• Accepted in foreign currencies, viz. USD/ GBP/ EUR.
• Minimum Amount USD 1000/- , GBP 1000/- , EUR 1000/-.
• Tenure of the deposit: Minimum 1 year to Maximum 5 years.
• Interest payable on maturity or at half yearly interest, as per customer’s choice.
• Nomination facility available.
• Joint accounts permitted with other NRIs/ PIOs and also with resident relative (as per section 2 (77) of Companies Act 2013.), but with operational instructions as “Former or survivor”.

Source of Funds:

• Foreign Inward Remittance through Normal Banking Channel.
• Transfer of funds from existing NRE / FCNR (B) Account.

Benefits:

• Principal along with interest are freely repatriable.
• No exchange risk as the deposit is maintained in foreign currency and the interest accrued / paid thereon is also in foreign currency.
• Interest earned is exempted from Income tax in India.
• Facility for automatic renewal of deposits on maturity.
• Any inland movement of fund for the purpose of opening FCNR (B)account as well as for repatriation outside India of balances held in these accounts will be free of Inland exchange or commission for Non Resident depositors.