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Resident Foreign Currency Scheme Account

Learn more about the Resident Foreign Currency Account.

This account is available for NRIs who have returned / proposed to return to India on a permanent basis.

  • Facility available for NRIs who have returned/proposed to return to India on a permanent basis.
  • The account will be denominated in USD, GBP, EURO.
  • The account can be held jointly with resident relative as joint holder on ‘former or survivor’ basis. However, such resident Indian relative joint account holder cannot operate the account during the life time of the resident account holder.
  • The account can be maintained in the form of Term Deposit account.
  • The entire amount brought in by returning Indians from abroad and or balances in their FCNR / NRE accounts can be converted and credited to such accounts.
  • NRIs who propose to return to India can remit the desired amount to the Bank with the request to open the account on their return to India.
  • Pension or other monetary benefits received from abroad, arising out of employment taken up abroad prior to his returning to India, can be credited to such accounts.
  • The balance in the account can be freely used for local disbursements.
  • Repatriation of balance held in RFC account or reconversion to NRE / FCNR account is permissible if the RFC account holder later becomes non-resident.
  • Loan facility is not available.
  • There is no ceiling on amount of Deposit. However deposits are accepted in minimum lots of USD 1000, GBP 500 and EURO 500.

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.