Opening Foreign Currency Non-Resident (Premium Account) In India
Foreign Currency Non-Resident – Premium Account
Dollar premium account has been renamed to FCNB (B) – Premium Account.
- Deposit Tenor: 1 Year
- Minimum Deposit:
- US Dollars: 2000
- Great British Pound: 2000
- Euro: 2000
- Australian Dollar: 2000
- Canadian Dollar: 2000
- Japan Yen: 2, 00, 000
How Can FCNB – Premium Account Be Opened
- Conversion of existing balance of NRE Savings Bank/Fixed Deposit to FCNR (B) deposits
- Remittances from abroad
- Both principal and interest are payable in Indian Rupees and to be credited on maturity in NRE Savings bank account only.
- No auto renewal facility is available.
- The product will be available to the NRI’s on specific request
- No interest is payable if the FCNR (B) deposit is closed before maturity.
- Maturity proceed is fully repatriable from NRE Savings bank account.
What is Foreign Currency Non-Resident Account
- It is a type of account ONLY for NRI’s and only designated branches can open it.
- Credit is required to be done only by foreign source and in foreign currency.
- Only different types of Term Deposit in USD, GBP, EURO, Australian Dollar, Canadian Dollar and Yen. (You need to check with your bank on the acceptable currencies).
- Amount is not taxable.
- Loan can be given and be repaid only from external sources.
- Both principal and interest can be sent back to the country but only after maturation.
- Funds can be transferred to NRO and NRE a/c.
- RBI has relaxed the norms by freeing the interest rates.
- Bank bears the exchange risk faced.
- Nomination allowed but repatriation allowed if nominee is NRI.
- Joint a/c’s with non-residents are allowed.