What is FCNR Account ?
FCNR account means foreign currency non-resident bank account.
Non- resident individual of indian nationality or indian origin can open FCNR Accounts and maintain a fixed deposit in foreign currencies and earn interests .
The following currencies are permissible in FCNR
FEATURES OF FCNR ACCOUNTS
FCNR accounts can be opened only by NRI’s or by person of indian origin.
Regular interest is paid on the FCNR accounts.
Deposits with a maturity of more than 1 year and less than 5 years can only be opened.
FCNR account can be opened jointly with other NRI’s and Resident Indians.
Nomination facility is available and any NRI, Person of indian origin, Indian resident can be made a nominee.
Recurring deposits are not accepted under this scheme.
Documents for FCNR accounts
Application form signed and attested
Copy of passport
Copy of visa
Latest overseas bank statement in original, latest telephone bill.
How to transfer funds to FCNR accounts?
The funds in an FCNR account must mandatorily come from overseas funds. There are several ways in which you can open an FCNR account.
You can transfer funds from your overseas bank account directly to open an FCNR account. You can do this either as a wire transfer or a cheque transaction
You can transfer funds from an existing NRE account
You can open an FCNR account using foreign currency notes or travelers cheques when you visit India.
One can withdraw FCNR before completion of the selected term. Premature withdrawal is subject to a penal interest of 1%. Moreover, no interest is payable if the deposit is closed within a year.
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