Learn more about the Foreign Currency Non Residential Bank Account Schemes from TMB.
This account facility is available to NRIs to invest in India in foreign currency to take advantage of the higher rate of interest offered.
Term Deposits in USD, GBP, EUR, CAD, AUD, JPY and CHF for a period from 1 to 5 years can be opened.
Remittances received in other convertible Currencies will be converted into any of the seven currencies named above at the option of the depositor. Any subsequent change will be at the cost of the Depositor.
Interest is payable in the same currency of the deposit either at half-yearly intervals or on maturity.
For deposits placed with Half yearly interest payout option or for a minimum period of one year, Simple Interest calculation is applicable. To enjoy compounding effect, the deposits should be placed for a period of above one year.
In the case of half yearly interest payout, The first interest payout will be at discounted rate if the broken period is less than the period of 6 months. The half yearly interest payout can either be repatriated or converted to Indian Rupees at the market rate prevailing on the date of interest payout and can be credited to the depositor's NRE account. Interest payout will be made on the last working day of March and September and on the maturity date. If the last working day of March / September is a holiday then the half yearly interest payout will be made on the next working day.
FCNR account can be opened jointly with other non-residents. NRIs are also permitted to open joint accounts with their resident close relatives (as defined in Companies Act) on former or survivor basis.
Nomination facility: Permitted. In favour of one person only.
Maturity proceeds can be repatriated.
No interest shall be paid on deposits which are pre-closed before expiry of minimum period of ONE YEAR. If deposits are prematurely closed / withdrawn / prematurely renewed after one year, the interest rate for the period for which the deposit remained with the bank as on the date of opening the deposit will be paid and there is no penal interest. In case of half-yearly interest withdrawal option, the excess interest paid will be deducted from the principal amount.
Automatic renewal option is available.
Matured deposit in full or in part shall be renewed for a minimum period of one year with effect from the date of renewal and the interest rate for the renewed portion will be the interest applicable for the total renewed period ruling on the date of maturity of the original deposit or on the date of renewal, whichever is lower.
There is no ceiling on amount of Deposit. However deposits are accepted in minimum lots of USD 1000, GBP 500 and EURO 1000.
No income tax on interest earned in FCNR(B) deposit.