FCNR (B) or Foreign Currency Non-Resident (Bank) Account is in the form term or fixed deposits (it is not a savings account). Hence, they are also known as FCNR (B) Deposits.
Only Non-Resident individuals (NRIs) or a Person of Indian Origin (PIO) are eligible to open a Foreign Currency Non Resident (Bank) Account with a bank.
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The FCNR (B) Deposits can be held singly or jointly (two or more) by NRIs or PIOs with a resident relative on a ‘former or survivor’ basis.
According to regulatory guidelines, the resident relative can operate the account as a Power of Attorney (POA) holder during the lifetime of the NRI/ PIO account holder.
However, the operations of the account for the POA holder are restricted to withdrawals for permissible local payments or remittance to the account holder himself through normal banking channels.
Nomination facility is permitted in favour of one person only, who could be either a Resident or NRI.
FCNR (B) Deposits can be opened in any foreign currency which is easily convertible. Axis Bank gives you choices of six currencies: US Dollar (USD), Great Britain Pound (GBP), Euro, Japanese Yen (JPY), Australian Dollar (AUD), and Canadian Dollar (CAD).
=> This is a kind of fixed deposit account opened for depositing income earned overseas.
=> The account is held in foreign currency.
=> Account available in a choice of 9 currencies: USD, GBP, EUR, JPY, CAD, AUD, SGD, HKD and CHF.
=> These accounts are exempt from TDS in India.
=> Overdraft against FCNR can be provided. The overdraft amount will be disbursed in INR and the funds can be utilized in India only.
=> Interest is not paid if the deposit is prematurely withdrawn before completion of 1 year.
Post 1 year there is no premature penalty charges, the applicable rate for which the deposit has been held is provided.
=> FCNR deposits can be opened for tenures of 1 year upto 5 years
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