Non-Resident (FCNR) Account
Open and Maintain FCNR A/c With
the exception of persons of Indian origin from Bangladesh and
Pakistan, all NRIs and PIOs are eligible to maintain an FCNR
account with an authorised bank in India.
may be opened with funds remitted from outside, existing
NRE/ FCNR accounts, etc.
should be in the designated currency.
to currency other than the designated currency also
permitted at the risk and cost of the remitter.
Features of FCNR
account can be opened with funds remitted from abroad, or
transferred from an existing NRE/FCNR account.
accounts can be opened with designated currencies, which
are: GBP, USD, Deutsche Mark, Japanese Yen and the Euro.
to another designated currency is permitted at a cost to the
term deposits can be maintained in FCNR accounts, in a time
range of 6 months to 3 years.
per RBI guidelines, banks are free to offer interest on FCNR
deposits below LIBOR rates, less 25 basis points for
deposits between 6 months to one year, and LIBOR rates plus
50 basis points for deposits over a year.
are also free to decide on a fixed or a floating rate of
interest on FCNR term deposits.
rates are reviewed periodically and determined by directives
from the Reserve Bank (Department of Banking Operations and
account holder can choose the periodicity of interest, from
half-yearly to annual payments. The interest can be credited
to a new FCNR (B) account or a NRE/NRO account.
permissible debits and credits, the regulations for FCNR
accounts are similar to the NRE accounts.
conversion of currencies, from designated currency to rupees
and vice versa, the day’s rate of conversion will apply.
from the FCNR account are allowed to move within the country
at no extra cost to the account holder.
loans and overdrafts against FCNR accounts, the same
conditions as the NRE accounts apply.
case of premature withdrawal of the FCNR Term Deposit, a
penalty is levied. Interest paid on the account is
calculated at a 1% below the committed rate if accounts are
no interest is paid on deposits held for less than 6 months,
and a penalty would have to be paid as per directives from
the apex bank. The RBI guidelines prevail on these terms,
issued as and when required.
A/c after Change in Resident Status
deposits such as the FCNR can continue till the maturity
date at the contracted rate of interest even after the
account holder’s resident status changes to resident Indian.
except for interest rates and reserve requirements of FCNR
deposits, these accounts are treated as resident accounts
effective from the account holder’s date of return to India.
maturity, these accounts are converted to either an RFC
account or the Resident Rupee Deposit account.
for joint accounts, the same rules as those for NRE accounts
apply to FCNR deposits too.
repatriation of funds from the FCNR account, the same
conditions as those for NRE accounts apply.
RBI does not provide any guarantee on foreign exchange.
Bank will not provide foreign exchange guarantee.
of resources mobilized by authorized dealers under these
accounts are not subject to any interest rate stipulations.