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    FCNR Ac by Pranab Namchoom

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    Pranab Namchoom
    FCNR (Foreign Currency Non-Resident) accounts allow non-resident Indians and persons of Indian origin to hold funds in foreign currencies. Some key points: 1) FCNR accounts must be opened for a fixed term between 1 to 5 years and offer interest rates linked to LIBOR or swap rates of the deposited currency. 2) They allow NRIs to earn higher interest on their foreign currency deposits compared to their home country. Funds can be repatriated abroad and loans may be provided against the account. 3) Premature withdrawals are allowed but penal interest rates may apply. The interest rate on the account is fixed for the term and deposits earn tax-free interest in India

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    FCNR Ac by Pranab Namchoom

    Uploaded by

    Pranab Namchoom
    95 views18 pages
    FCNR (Foreign Currency Non-Resident) accounts allow non-resident Indians and persons of Indian origin to hold funds in foreign currencies. Some key points: 1) FCNR accounts must be opened for a fixed term between 1 to 5 years and offer interest rates linked to LIBOR or swap rates of the deposited currency. 2) They allow NRIs to earn higher interest on their foreign currency deposits compared to their home country. Funds can be repatriated abroad and loans may be provided against the account. 3) Premature withdrawals are allowed but penal interest rates may apply. The interest rate on the account is fixed for the term and deposits earn tax-free interest in India

    Original Description:

    The presentation is about a brief introduction to FCNR account which is opened by NRI's and PIO's.

    Original Title

    Fcnr Ac by Pranab Namchoom

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    FCNR (Foreign Currency Non-Resident) accounts allow non-resident Indians and persons of Indian origin to hold funds in foreign currencies. Some key points: 1) FCNR accounts must be opened for a fixed term between 1 to 5 years and offer interest rates linked to LIBOR or swap rates of the deposited currency. 2) They allow NRIs to earn higher interest on their foreign currency deposits compared to their home country. Funds can be repatriated abroad and loans may be provided against the account. 3) Premature withdrawals are allowed but penal interest rates may apply. The interest rate on the account is fixed for the term and deposits earn tax-free interest in India

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    95 views18 pages

    FCNR Ac by Pranab Namchoom

    Uploaded by

    Pranab Namchoom
    FCNR (Foreign Currency Non-Resident) accounts allow non-resident Indians and persons of Indian origin to hold funds in foreign currencies. Some key points: 1) FCNR accounts must be opened for a fixed term between 1 to 5 years and offer interest rates linked to LIBOR or swap rates of the deposited currency. 2) They allow NRIs to earn higher interest on their foreign currency deposits compared to their home country. Funds can be repatriated abroad and loans may be provided against the account. 3) Premature withdrawals are allowed but penal interest rates may apply. The interest rate on the account is fixed for the term and deposits earn tax-free interest in India

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 18

    FCNR Account

    By

    Pranab Namchoom
    Management Trainee
    Punjab National Bank

    DEFINITION

    ein a Non Resident Individual of Indian Nationality or Indian Origin can main
    by the holder of power of attorney in India.
    n currency through normal banking channel, which are of repatriable nature in term

    Who Can Open FCNR?

    PIOs in foreign currency. Thus, FCNRs are not savings accounts but fixed de
    RBI)

    ers are persons of Indian nationality or origin


    shall be eligible to operate the account as a Power of Attorney holder in acc

    Currencies Allowed(Only For PNB)

    ny permitted currency. 'Permitted currency' for this purpose would mean a

    Features of FCNR Account -I

    n be opened only by NRIs or by Person of Indian Origin (PIO)

    an be opened only in the Foreign Currencies specified above and thus the currency fluctuatio
    paid on the FCNR Account

    aturity of more than 1 year and less than 5 years can only be opened

    Features of FCNR Account II

    ll as with Resident Indians

    dent can be made a nominee

    cost to the account holder.

    d of. However, the Loans cannot be used for the purpose of relending, carrying on agricultural

    Advantages Of FCNR I

    n currency.

    with another person resident in India is not permitted.


    Dollar, Yen and Euro.
    a To foreign Country) In other words, the interest earned and the deposit am

    Advantages Of FCNR II
    for not less than 1 year and not more than 5 years.

    offer FCNR accounts set the interest rates within the ceiling as announced by the Reserve

    m deposits are payable after the end of first year. Interest is compounded on a half-yearly(1

    held in the FCNR accounts can be provided to account holder for any investment in India.

    ide loans to firms or companies against the collateral of FCNR accounts.

    Disadvantage Of FCNR-I

    interest is payable.
    s can be taken by account holders only.
    not for current, savings and recurring accounts.
    nts before maturity. However, penalties will apply for premature withdrawals. Also, swapping charges a
    maturity, failing which, the bank will fix interest rate on renewal. If renewed accounts are withdrawn bef

    Disadvantage Of FCNR-II

    of India, under the Indian Income Tax Act frames the tax rules, which are subject to change.
    cases, Greek citizens, were reportedly, restricted from withdrawing over 40 euros from their accounts
    ccounts in India to around Rs. 100,000 or 1600 USD, which is considered low. Many experts, therefor

    Docs Required For Opening FCNR Account

    ent, income documents may be required. Document requ

    Payment Of Interest

    year, interest at the applicable rate will be paid without any compounding effect.
    or more than one year, interest can be paid at intervals of 180 days each and thereafter for remainin
    h 1, 2014
    ss than 3 year maturity, interest shall be paid within the ceiling rate of LIBOR/ SWAP rates plus 200 b
    aturity, interest shall be paid within the ceiling rate of LIBOR/ SWAP rates plus 300 basis points.

    Interest Rate Table(PNB)

    Open With Funds

    ermitted currencies, with / out of the funds received as foreign inw


    an FCNR account. He/she can do this either as a wire transfer or

    lers Cheques when you visit India


    versa permitted without the prior approval of RBI.

    Premature Withdrawal of FCNR

    nterest is levied on the same. The Penal Interest charged is different b


    rease in the Interest Rates, for a period more than the unexpired

    FCNR Account after change in Residential Status

    maturity date at the contracted rate of interest even after the acco
    n RFC account or the Resident Rupee Deposit account.

    Important Links

    https://www.rbi.org.in/scripts/FAQView.aspx?Id=69
    https://www.pnbindia.in/upload/En/FAQs%20FCNR.pdf

    THANK YOU

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