Foreign Currency Non-Resident (Banks)Accounts - "FCNR"
Non-Resident Indians can open accounts under this scheme (Individuals/entities of Pakistan & Bangladesh shall requires prior approval of RBI. However, Indian staff posted at Indian Embassy in Pakistan/Bangladesh & their nonresident dependents may open these accounts). The account should be opened by the non-resident account holder himself and not by the holder of power of attorney in India.
These deposits can be maintained in 6 designated currencies i.e. U.S. Dollar (USD), Pound Sterling (GBP) Euro (EUR), Australian Dollar (AUD), Canadian Dollar (CAD) & Japanese Yen (JPY).
These accounts can only be maintained in the form of terms deposits for maturities of minimum 1 year to maximum 5 years.
These deposits can be opened with funds remitted from abroad in convertible foreign currency through normal banking channel, which are of repatriable nature in terms of general or special permission granted by Reserve Bank of India.
These accounts can be maintained with our branches, which are authorised for handling foreign exchange business. (List of branches authorised for handling foreign exchange business linked at the end).
Funds for opening accounts under PNB Global Foreign Currency Deposit Scheme or for credit to such accounts should be received from:
- Remittance from outside India or Traveller Cheques/Currency Notes tendered on visit to India. International Postal Orders cannot be accepted for opening or credit to FCNR accounts .
Transfer of funds from existing NRE/FCNR accounts.
If the remittance is received in a currency other than the designated currency mentioned above(including funds received in rupees by debit to the account of a non-resident bank), it should be converted into the latter currency by the authorized branch at the risk and cost of the remitter and account should be opened/ credited only in the above designated currency.
Rupee balances in the existing NRE accounts can also be converted into one of the designated currencies at the prevailing TT selling rate of that currency for opening of account or for credit to such accounts.
Advantages of FCNR (B) Deposits
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Principal alongwith interest freely repatriable in the currency of your choice.
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No Exchange Risk as the deposit is maintained in foreign currency.
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Loans/overdrafts in rupees can be availed by NRI depositors or 3rd parties against the security of these deposits. However, loans in foreign currency against FCNR (B) deposits in India can be availed outside India through PNB IFSC Gift City .
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No Wealth Tax & Income Tax is applicable on these deposits.
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Facility for automatic renewal of deposits on maturity and safe custody of Deposit Receipt is also available.
Payment of Interest
Interest on FCNR (B) deposits is being paid on the basis of 360 days to a year. However, depositor is eligible to earn interest applicable for a period of one year if the deposit has completed a period of 365 days.
For deposits upto one year, interest at the applicable rate will be paid without any compounding effect. In respect of deposits for more than one year, interest can be paid at intervals of 180 days each and thereafter for remaining actual number of days. However, depositor will have the option to receive the interest on maturity with compounding effect in case of deposits of over one year.
Additional Concessions offered under PNB Global Foreign Currency Deposit Scheme
All account holders maintaining minimum deposit of USD 5000 or its equivalent will be eligible for following concessions in various facilities being offered by the bank: -
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Free remittance up to Rs.1 lac per annum from his account to anywhere in India, subject to recovery of out of pocket expenses.
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No collection charges on any instrument collected in account holder`s account, up to Rs.1 lac per annum, from anywhere in India subject to recovery of out of pocket expenses.
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Depository services: 50% concessions on service charges of our bank till the deposits remain with the bank.
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Free multicity chequebook for CBS branch customers.
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Free Lockers facility for the customers maintaining a minimum balance of $ 10000 or its equivalent.
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No Inter-branch (Intersol) transaction charges for banking transactions, by the account holders, in the CBS branches.i. Free Internet Banking facility.
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Bank will bear foreign bank charges on transfer of funds to our Nostro Accounts subject to minimum deposit of USD 10000 or its equivalent.
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Facility of automatic renewal of Fixed Deposits on maturity.
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Linkage with saving account for family at home by allowing overdraft by marking lien in their FCNR account.
Authorized Branches for accepting FCNR (B), RFC & RFC (D) deposits
The account can only be opened in the name of NRI individuals either single or joint.
FCNR(B) accounts can be opened as per depositor’s choice, in any of the permitted currencies, out of the funds received as foreign inward remittances in convertible currency through normal banking channel. The Foreign Currency Travellers Cheques / Notes may also be accepted during temporary visits of the NRI, for credit to FCNR(B) account.
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In the names of two or more non-resident individuals provided all the account holders are persons of Indian nationality or origin.
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Resident close relative (relative as defined in Section 6 of the Companies Act, 1956) on ‘former or survivor’ basis. The resident close relative shall be eligible to operate the account as a Power of Attorney holder in accordance with extant instructions during the life time of the NRI/ PIO account holder.
Nomination in favour of NRI/PIO or a resident is allowed in the account.
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1 year and above but < 2 years
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2 years and above but < 3 years
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3 years and above but < 4 years
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4 years and above but < 5 years
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Five years only.
No. Interest income from FCNR (B) accounts is exempt under Income Tax rules.
No. Deposit held under FCNR (B) accounts is not taxable under Wealth Tax.
Yes. He can give instructions about operations in the account, but can remit the amount abroad only to the account holder.
Yes, at the request of all the joint holders, Bank may allow the addition or deletion of name/s of joint account holder/s, as per rules.
Yes. Funds (Principal & Interest) is fully repatriable in foreign currencies
Yes. As per the instruction, subject to Bank being satisfied about such repatriations.
For deposits up to one year, without any compounding effect,
For deposits for over 1 year, compounding at intervals of 180 days each and thereafter for the remaining actual number of days.
Bank to pay interest at the originally contracted rate on the deposit amount for above mentioned days, intervening between the due date and the actual date of payment, on the succeeding working day.
Yes, for permitted purposes, as per RBI guidelines.
In India
To the Account holder/ Third Parties
Permitted without any ceiling subject to usual margin requirements.
Abroad
To the Account holder/ Third Parties
Permitted
Banks may allow FCNR (B) deposits NRIs/PIOs, who return to India for permanent settlement, to continue till maturity at the contracted rate of interest, if desired, as per rules.
Yes. At the request of the depositor, Bank allows premature withdrawal. However, no intent to be paid if withdraw within year
The present guidelines are:
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In case of premature cancellation of FCNR (B) deposits for the purpose of renewing it further, for a period, which is up to or more than the original maturity date, interest may be paid at the rate applicable on the date of original deposit, for the period for which the deposit has remained with the Bank, without any penalty.
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In case deposits under this scheme are withdrawn before maturity, the rate of interest payable on such deposits will be subject to a penalty of 1.00% on the rate applicable for the period for which the deposit has run.
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No interest shall be paid on deposits, which have not run for the minimum stipulated maturity period i.e. one year.
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Where FCNR (B) deposits are converted into NRE deposits before maturity, at the request of account holder, the rate of interest payable on such deposits will be subject to penalty of 1.00% on the rate applicable for the period for which the deposit has run.
All debits / credits permissible in respect of NRE accounts, including credit of sale proceeds of FDI investments, are permissible in FCNR (B) accounts also.
Terms and conditions as applicable to NRE accounts in respect of joint accounts, repatriation of funds, opening account during temporary visit, operation by power of attorney, loans/overdrafts against security of funds held in accounts, shall apply mutatis mutandis to FCNR (B).