The FCNR account is meant for those who wish to hold the deposit in a foreign currency of their choice. Presently FCNR(B) deposits can be placed in 6 currencies viz US dollar (USD), Pound sterling (GBP), Japanese Yen (JPY), Euro (EURO), Australian Dollar(AUD) & Canadian Dollar (CAD). The major advantage of this account is that the depositor need not worry about the Exchange rate fluctuations.
NRIs can choose between tenure of 1year to 5 years. Interest on FCNR deposits varies currency wise. Please refer to our website for current rate of interest.
Interest and the principal are both freely and fully repatriable.
The account may be held jointly with residents and/or with non-residents. If the account is held jointly with non-residents, the operation mandate in the account may be as per the choice of the account holder. If the account is held jointly with resident Indians, the joint account holder should be a close relative as per RBI guidelines and operation mandate in the account shall only be FORMER OR SURVIVOR.
Loans against the deposits are available in India both to the depositor and third parties at the request of the depositors. Banks also provides Loan against FCNR(B) deposit in Foreign Currencies also to the depositors only. The account can be opened by transferring funds from abroad or from your existing NRE/FCNR accounts.