free hit counters
Features | NRIAccount.com

FCNR Account » Features

  • The account can be opened with funds remitted from abroad, or transferred from an existing NRE/FCNR account.
  • FCNR accounts can be opened with designated currencies, which are: GBP, USD, Deutsche Mark, Japanese Yen and the Euro.
  • Conversion to another designated currency is permitted at a cost to the account holder.
  • Only term deposits can be maintained in FCNR accounts, in a time range of 6 months to 3 years.
  • As 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.
  • Banks are also free to decide on a fixed or a floating rate of interest on FCNR term deposits.
  • Interest rates are reviewed periodically and determined by directives from the Reserve Bank (Department of Banking Operations and Development).
  • The 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.
  • For permissible debits and credits, the regulations for FCNR accounts are similar to the NRE accounts.
  • For conversion of currencies, from designated currency to rupees and vice versa, the day’s rate of conversion will apply.
  • Funds from the FCNR account are allowed to move within the country at no extra cost to the account holder.
  • For loans and overdrafts against FCNR accounts, the same conditions as the NRE accounts apply.
  • In 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 closed prematurely.
  • However, 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.

FCNR A/c after Change in Resident Status

  • NRI 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.
  • However, 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.
  • On maturity, these accounts are converted to either an RFC account or the Resident Rupee Deposit account.
  • As for joint accounts, the same rules as those for NRE accounts apply to FCNR deposits too.
  • For repatriation of funds from the FCNR account, the same conditions as those for NRE accounts apply.
  • The RBI does not provide any guarantee on foreign exchange.

Generated Keywords for the page : money to india , bank account , send money , to india , checking account , checking accounts , nri account , bank accounts , savings account , account , nri , india , money , accounts , nre , apartment , remittance , apartments , , bank account , foreign bank account , open bank account , banks , fcnr account , nri accounts , nri account , demat account india , icici nri account , icici nri bank account , nre accounts , fixed deposits , free bank account , high interest checking account , high interest checking accounts , nri demat account , nri loans , online checking account , term deposit , anonymous bank account , bank accounts online , bank rates , checking accounts , current accounts , fcnr deposits , fixed deposit , fixed deposits india , free checking account , high interest savings accounts , high yield savings account , icici bank , icici fcnr , icici nre , icici nre account , interest rate india , nre account , nre nro , nri banking , nri fcnr , nri investments , nro account , off shore bank account , off shore bank accounts , offshore accounts , offshore bank account , offshore bank accounts , online bank account , online savings account , online savings accounts , opening a bank account , opening bank account , saving accounts , sbi nre , sbi nri account , state bank of india nri , swiss bank account , trading nri , bank accounts , bank interest rates india , checking account , current account ,

Stumble it!