FOREIGN CURRENCY NON RESIDENT ACCOUNT

 

an FCNR account is a term deposit account that can be maintained by NRI and PIOs foreign currency thus FCNR are not saving accounts but fixed deposit accounts prior to 2011 FCNR deposits were allowed to mount in six currencies us dollar pound sterling GBP euro Japanese Yen Australian dollar and Canadian dollar however in October 2011 the RBI permitted banks to accept FCNR deposits in any permitted currency permitted currency for this purpose would mean a foreign currency which is freely convertible and popularly include Danish Krones SWiss France and Swedish Krona among others the funds in an FCNR account must necessarily come overseas of NRI there are several ways in which funds can be transferred to open an FCNR account these are transfer funds from the overseas bank account directly to open an FCNR account either as a write transfer or  a cheque transaction 

other features of FCNR deposite are as under

• the minimum term for an FCNR deposit is 1 year and the maximum is five years
• premature withdraw are allowed before completion of the selected term premature withdrawal is subject to a penal interest of 1% moreover no interest payable if the deposit is closed within a year 
• FCNR accounts can be opened jointly with other NRI or with residents who is close relatives in this case resident relative can operate the account as the power of at ternary holder 
• The nomination facility is available in FCNR accounts and the nominee can be either an NRI or resident 

NRI operating Resident Accounts

the Reserve bank of India RBI has allowed nonresident NRI to operate resident bank accounts banks can include an NRI close relative in EXISting and or NEW resident bank account as joint holder 

 

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