FCNR accounts can be opened only by an NRI and kept in Term Deposits for fixed periods.
It can be opened jointly with another NRI.
Nomination can be in favor of residents or non-residents. Funds lying in the NRE Account on the death of an account holder can be repatriated to his non-resident nominee. For remittance of funds by resident nominee outside India for meeting the liabilities or for similar other purposes of the deceased account holder, prior approval of RBI is required.
Deposits can be opened in USD, Euro, Sterling Pounds, Canadian Dollars and Australian Dollars.
The minimum period of deposit is one year and maximum period is 5 years.
No penalty is levied after the minimum period of 1 year, for the amounts up to Rs.5.00 lacs or equivalent of $10,000 USD.
Premature withdrawal permissible subject to 1% penal interest, after the minimum period of 1 year, for the amounts ABOVE Rs.5.00 lacs or equivalent of $10,000 USD.
No interest is payable if the deposit is closed within a year.
Rupee loans can be taken in India against the security of the deposit.
a) By the depositor(s)
b) By third parties
Foreign currency loans can be availed abroad against the security of FCNR deposits.
NOTE:
