Foreign Currency Non Resident Accounts (FCNR (B) A/Cs)
These accounts can be opened out of foreign remittances or proceeds of NRE Accounts.
The Designated currencies are US Dollars(USD), Great Britain Pounds (GBP), EURO, Canadian Dollars(CAD) and Australian Dollars (AUD).
Conversion of Rupee into Designated Foreign Currency and vice versa for FCNR(B) Accounts will be at TT selling and TT buying rates respectively.
FCNR (B) deposits are accepted for a period of 1 year to 5 years in USD, GBP, EURO, CAD and AUD currencies. To get the benefit of compounding, the deposit is required to kept for a minimum period of 1 year and 1 day. No Interest is payable, if account is closed before completion of one year.
Loans permitted against these deposits on terms similar to loans against NRE Deposits.
Joint Accounts can be maintained and repatriation of funds can be done as applicable to NRE deposits detailed above.
On return of the depositor to India, the FCNR(B) A/c can be redesignated as RFC A/c.
Loans against FCNR(B) Deposits will be disbursed in Indian Rupees as well as in foreign currency.
In the absence of any instruction for automatic renewal of NRE/FCNR(B) Deposits, overdue deposits shall not be eligible for interest for the overdue period exceeding 14 days.
The penalty on premature closure of FCNR (B) / RFC Term Deposits : 1% on the applicable rate for the period the FCNR (B) / RFC Term Deposit has remained with the bank after completion of one year.