Learn more about the Foreign Currency Non Resident 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 and deposits placed for a period of one year, Simple Interest calculation is applicable.
- 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 payouts will be made on the next working day.
- To enjoy compounding effect, the deposits should be placed for a minimum period of one year and one day.
- FCNR account can be opened jointly with other NRIs. NRIs are also permitted to open joint accounts with their resident close relatives (as defined in section 2(77) of the Companies Act, 2013) 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. Please check our premature closure policy referred below for complete details.
- Automatic renewal option is available.
- Matured deposit in full or in part shall be renewed from the due date 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, EURO 500, CAD 1000, AUD 500, JPY 100,000 and CHF 500.
- No income tax deducted on interest earned in FCNR(B) deposit.
Learn more about the Current Pre Closure Norms of FCNR / RFC Deposits at TMB.
TMB has a very clear cut and transparent policy of the charging of penal interest / charges towards the pre closure of deposits with the bank. These norms are strictly followed by the bank for every deposit made.
No Interest will be paid for :
No interest will be paid for the FCNR (B), FCNR Plus & RFC Deposits with are prematurely closed before completion of one year from the date of opening of the deposit.
For the deposits which are prematurely closed after completion of one year from the date of opening of deposit, interest will be paid at the rate of interest applicable for the period for which the deposit remained with the bank prevailing on the date of opening of the said deposit or the contracted rate of interest, whichever is less minus one hundred basis points (1%).
Exemption from Premature Renewal :
In case of FCNR (B), FCNR Plus & RFC Deposits which are extended during the tenure of the deposit for a period longer than the balance period (i.e. The remaining period of the deposit), the period of extended deposit shall be minimum of twelve months and a maximum of 5 years effective from the date of extension subject to the following condition :
- If such premature extension is done before completion of 12 months no interest is payable on such deposits (as per RBI guidelines).
- In all other cases, interest shall be paid at the rate applicable for period for which the deposit has actually run as prevailing on the date of opening the deposit or the contracted rate of interest whichever is less minus one hundred basis points (1%).
Note :
If such extended deposit is prematurely closed, the payment of interest will be as given below :
- No interest will be paid if the deposit has not crossed the minimum period of 12 months from the date of opening of the original deposit.
- In all other cases, interest shall be paid at the rate of interest ruling on the date of original deposit (deposit before premature renewal) for the period for which the deposit has run from the date of original deposit or the contracted rate of original deposit whichever is less minus one hundred basis points (1%).
The penal clause will be applicable for all the new deposits opened / deposits which are renewed on or after Sep 01, 2016.