FCNR [Foreign Currency Non-Resident Account)
- Deposits can be opened for periods ranging from 1 year to 5 years in any of the 9 designated currencies viz: US Dollar, Pound Sterling, EURO, Australian Dollar, Canadian Dollar, Japanese Yen , Swiss Franc, Danish Krone and Swedish Krone
- Deposits can be made by remittances from abroad or by funds held in existing NRE accounts.
- Accounts can be opened jointly with other Non-Resident Indians.
- No Exchange loss as interest and principal amounts are payable in the same currency in which it is deposited.
- Interest is compounded every half yearly.
- . Loan is available against the deposit as per extant RBI guidelines from time to time. Currently loans are available to the extent of balance available subject to margin requirements . The facility of premature withdrawal shall not be available where loan against such deposits are to be availed of.
- Nomination facility is available.
- Interest earned on these accounts is free from income tax.
- Funds invested in NRE and FCNR accounts by Non-Residents are free from Wealth Tax.