The importance of saving money cannot be undermined. No matter, what part of the world you are in, it is integral to have savings tucked away. While most of us in India, can park our savings into several different savings accounts, Non Resident Indians, looking to invest their money in India, can do so by opening a Foreign Currency Non Resident or FCNR account. This however, is not a savings account but a term deposit account, which can be maintained by both, NRIs and Persons of Indian Origin (POIs). Here are some common FAQs about FCNR accounts answered.
In what currencies can I maintain my account?
The account can be maintained in any of the major foreign currencies including the US, AUS, Canadian, Singapore Dollar, UK Pound, Euro, Japanese Yen, Swiss Franc etc.
How can I open this account and transfer funds into it?
The funds in your foreign currency account can only come from your overseas income/funds, and the FCNR account can be opened online. Once you’ve opened the account, you can directly transfer funds from your overseas bank account. This can be done either through a cheque transaction or a wire transfer. Furthermore, you can also transfer funds from your existing Non Resident Rupee (NRE) account. You can also open this account on your visit to India by depositing travellers’ cheques or foreign currency notes.
What is the tenure for the account?
Typically, you can open this term deposit account for a minimum of 1 year, whereas the maximum tenure is 10 years.
Can I make a premature withdrawal?
Yes, investors are allowed to withdraw money from the FCNR account, before the completion of the selected term. However, premature withdrawals are subjects to a 1% penal interest. Also, the bank is not obligated to pay interest on the deposit if you choose to make the withdrawal within one year.
Can I use my funds from the account for local payments while I’m in India?
Yes, the balances in the account can be used for making local payments in India. However since this type of account is a term deposit, you must first transfer the necessary amounts into your NRE account and withdraw from the NRE accounts to make the payments.
Can I hold a joint account?
Yes, it is possible to hold a joint foreign currency account with other NRIs or with resident Indians you are related to. In the case of the latter, the resident relative may operate your account, serving as its power of attorney.
Is there a facility for nomination?
Yes, there is a facility for the account holder to nominate anyone he chooses. The nominee can be both, a resident Indian or an NRI. In the case of the unfortunate death of the NRI holding the account, the balance in the account can be credited to the NRI nominee’s FCNR account and the funds can be freely repatriated.
In what currencies can I maintain my account?
The account can be maintained in any of the major foreign currencies including the US, AUS, Canadian, Singapore Dollar, UK Pound, Euro, Japanese Yen, Swiss Franc etc.
How can I open this account and transfer funds into it?
The funds in your foreign currency account can only come from your overseas income/funds, and the FCNR account can be opened online. Once you’ve opened the account, you can directly transfer funds from your overseas bank account. This can be done either through a cheque transaction or a wire transfer. Furthermore, you can also transfer funds from your existing Non Resident Rupee (NRE) account. You can also open this account on your visit to India by depositing travellers’ cheques or foreign currency notes.
What is the tenure for the account?
Typically, you can open this term deposit account for a minimum of 1 year, whereas the maximum tenure is 10 years.
Can I make a premature withdrawal?
Yes, investors are allowed to withdraw money from the FCNR account, before the completion of the selected term. However, premature withdrawals are subjects to a 1% penal interest. Also, the bank is not obligated to pay interest on the deposit if you choose to make the withdrawal within one year.
Can I use my funds from the account for local payments while I’m in India?
Yes, the balances in the account can be used for making local payments in India. However since this type of account is a term deposit, you must first transfer the necessary amounts into your NRE account and withdraw from the NRE accounts to make the payments.
Can I hold a joint account?
Yes, it is possible to hold a joint foreign currency account with other NRIs or with resident Indians you are related to. In the case of the latter, the resident relative may operate your account, serving as its power of attorney.
Is there a facility for nomination?
Yes, there is a facility for the account holder to nominate anyone he chooses. The nominee can be both, a resident Indian or an NRI. In the case of the unfortunate death of the NRI holding the account, the balance in the account can be credited to the NRI nominee’s FCNR account and the funds can be freely repatriated.
No comments:
Post a Comment