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.
Presently FCNR(B) deposits of one year one day only are accepted in Euro, GBP,CAD and AUD and in case of USD 1 year to 5 years. No interest is payable if A/c is closed before completion of 1 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.
