These accounts can be opened by NRIs/PIOs out of foreign remittances or proceeds of NRE accounts.
The designated currencies are US Dollars (USD), Great Britain pounds (GBP), Euro, Canadian Dollar (CAD) and Australian Dollar (AUD). These deposits are in the form of Term deposits (Fixed or Reinvestment).
Conversion of Rupee into designated Foreign currency and vice versa for FCNR (B) accounts will be at TT selling and TT buying rates respectively.
FCNR (B) deposits are accepted for a period of 1 year to 5 years in USD, GBP, Euro, CAD and AUD currencies. To get the benefit of compounding of interest, the deposit is required to be kept for a minimum period of 1 year and 1 day. Minimum amount acceptable under FCNR (B) deposits is USD 1000, GBP 500, Euro 1000, CAD 1000 and AUD 1000.No interest is payable, if account is closed before completion of one year and if the said account is closed within two months of opening, penal charges will be recovered at the rate of 0.25% of the deposit amount, subject to a minimum of Rs.300/-.
Loan permitted against these deposits on terms similar to loans against NRE term deposits.
Joint accounts can be maintained and repatriation of funds can be done as applicable to NRE deposits.
On return of the depositor, FCNR (B) can be converted on maturity into Resident Foreign Currency (RFC) account (if the depositor is eligible to open RFC account) at the option of the account holder and interest on the new deposit (rupee account or RFC account) shall be payable at the relevant rates applicable for such deposits.
Loans against FCNR (B) deposits will be disbursed in Indian rupees as well as in Foreign currency.
FCNR (B) deposits will be automatically renewed by our branches on maturity unless instructions to the contrary are received by the Branch before maturity. In case of any reason if the account is not renewed on the date of maturity it should be renewed within 14 days from the date of maturity (both days inclusive). Deposits shall not be eligible for interest for the overdue period exceeding 14 days.
The penalty on premature closure of FCNR (B): after completing 1 year, interest will be paid 1% less than the rate applicable for the period for which the deposits remained with the Bank at the time of acceptance of deposit or prevailing as on the date of premature withdrawal whichever is lower.
Nomination facility is available.