NRI Foreign Currency Accounts |
Yes. Accounts in foreign currencies (FCNR accounts) can
be maintained by NRIs with authorized dealers in India.
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Ans.II
FCNR Accounts permitted to be maintained in Pound
Sterling, U.S. Dollar, Deutshe Mark and Japanese Yen.
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Ans.III
NO. FCNR accounts can be maintained only in the form of
term deposits,l i.e. a deepest kept for fixed period ranging from 6 months to 3 years.
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Ans.IV
The maximum period of maturity is three years.
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Ans.V
Yes. However, this is subject to the levy of a penalty.
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Ans.VI
Interest in such cases is paid at one per cent below the
interest rate payable for the period for which the deposit is, however, payable only if
they are kept for a minimum period of six months.
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Ans.VII
No. While the premature withdrawal would be allowed, no
interest would be payable. For such premature withdrawals the bank may levy penalty as per
their discretion.
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Ans.VIII
Yes. The Banks have been permitted to offer interest on
such deposits at rates not more than the LIBOR prevailing on the last working day of the
previous week for the relevant maturity and currency. Subject to this guideline, banks can
offer either fixed or floating rate of interest on such deposits.
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Debits for local payments in rupees are allowed freely.
As regards debits for investments in India, please see Chapters III and IV.
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Ans.X
Yes. Authorized dealers maintaining these accounts would
allow repatriation abroad of these funds.
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Ans.XI
Yes. (Also see Answer to Q.26 for repatriation of funds
in NRE account)
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Ans.XIV
Banks would treat the deposits held in FCNR accounts as resident deposits but would continue to pay interest at the contracted rate till maturity of the deposit.