Foreign Currency Non Resident (Bank) [FCNR (B)] Account

Overview of FCNR (B) Accounts:

  • Deposit is denominated in foreign currency and can be opened in USD, GBP, EURO, CAD, JPY, or AUD
  • Deposit can be opened either individually or jointly with other NRIs / PIOs / OCIs
  • Both principal and interest are payable in foreign currency. Hence, there is no exchange loss on principal and interest
  • Account types permissible:
    • Term Deposit
    • Special Term Deposit
  • Funds deposited in the account can be by way of fresh remittance from overseas or transfer from other NRE / FCNR (B) account or NRO account (subject to limit)
  • Interest earned on FCNR (B) deposits is exempted from Indian Income tax
  • Foreign currency loans and Rupee loan available against FCNR (B) deposits
  • A joint account with a resident is not allowed