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Foreign Currency Non Resident Plus account

Learn more about the New Foreign Currency Non Resident Plus Bank Account Schemes from TMB.

Scheme has been introduced with a view to offer better yield on the FCNR (B) Deposits by booking a forward contract for the maturity value of FCNR (B) Deposit. On maturity, the depositor will receive the proceeds in Indian Rupees at the contracted exchange rate. FCNR PLUS deposit has a competitive edge over the NRE Deposits.

Scheme The Scheme (FCNR Plus) is aimed to offer better yield on FCNR (B) Term Deposits by allowing the depositors to book Forward Purchase Contract for maturity value of the FCNR (B) deposit. In case of Half-yearly Interest payout, Forward Purchase Contract will be booked for the Principal amount only.
Who can open NRIs / PIO
Currencies Permitted USD and EURO
Minimum Deposit US$ 25,000/- and equivalent of USD 25,000/- in EURO
Tenure of Deposit 1 / 2 / 3 Years
Tenure of Forward Contract Corresponding to the tenure of the deposit.
Rate of interest As that of FCNR-B Deposits.
Interest payout option

On Maturity : Cumulative Interest.

Half-yearly :

  • Simple Interest calculation.
  • 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.
Maturity Proceeds Maturity proceeds / Principal payable in repatriable Indian Rupees at the contracted rate.v
Joint Account Permitted in the names of two or more NRIs who are Indian Nationals or Person of Indian Origin. Joint accounts along with resident close relative of the NRI (relatives as defined in section 2(77) of the Companies Act, 2013) can be opened on "Former" or "Survivor" basis.
Premature Closure

In the event of premature closure of the deposit :

  • Deposits will not be permitted to be pre-closed unless the forward purchase contract booked for the concerned deposits is cancelled.
  • No interest will be paid for the deposits which are prematurely closed before completion of one year from the date of opening. Please check our premature closure policy referred below for complete details.
  • The exchange loss arising on account of cancellation of the forward contract will have to be borne by the depositor and the swap gain, if any, will not be paid.
Cancellation of forward contract In case the customer desires to retain the deposit and cancel the forward contract, the exchange loss on account of cancellation of the forward contract will have to be borne by the depositor and the swap gain if any will not be paid.
Repatriation Maturity proceeds can be freely repatriated.
Nomination Permitted. In favour of one person only.
Power of Attorney Holder Not Permitted. The account holder has to sign the Forward Contract Agreement.
Loans Permitted subject to terms & conditions. The facility for premature withdrawal of deposits will not be available where loans against such deposits are availed of.

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.