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Top Features of AU FCNR (B) Deposit

About FCNR (B) Deposit

    Foreign Currency Non-Resident Account Deposit (FCNR (B)) is an attractive investment option to park your foreign earnings in India with high returns. The principal and interest amount earned are fully repatriable in the respective foreign currency without any exchange rate risk.

    So, if you are looking for a secure avenue to earn returns on your foreign earnings, FCNR (B) is just the right choice for you.

Features of FCNR(B) Deposits

  • Lucrative returns on investment: Earn High interest rates on your FCNR(B) deposits. Click here for Interest Rates
  • Flexible account tenure: Decide on a duration ranging from 1 year to 5 years, as per your requirement
  • Available Currencies: Book your FCNR(B) deposit in 3 Major Currencies USD, EURO, & GBP
  • Tax Benefits: Principal and Interest earned are 100% tax free.
  • Hassle-free renewal: Automatic renewal of your principal and interest on maturity
  • Additional interest benefit: Interest for deposit is compounded every six months. (Half year/ six months is defined as 180 days)
 

Benefits of FCNR(B) Deposits:

  • Full Repatriation: Both the principal amount and the interest earned are fully and freely repatriable
  • Helps in diversification: Investing in FCNR(B) deposits allows you to diversify your investment portfolio across different currencies
  • No cap on Deposits: There is no upper limit on the amount of FCNR(B) deposit
  • No currency conversion costs: Since the deposits are maintained in foreign currencies, no cost is associated with currency conversion.
  • Nomination facility: Nominate a beneficiary to claim the interest and earnings from your regular Fixed Deposit in case of an unfortunate event.
  • No premature withdrawal charges: Withdraw your fund whenever you want with no charges on premature withdrawal
 

Eligibility criteria

The individual must be a Non-Indian resident (NRI) as per FEMA definition

 

How to book a FCNR(B) Deposit?

Simply fill in the form and send the scanned copy at [email protected].

Click here for the form

 

How can you transfer your funds to book FCNR(B) deposit?

Funds can be transferred from your AU NRE account or any foreign currency account outside India. Upon fund transfer from your NRE account, the amount transferred will be converted into the foreign currency at prevailing exchange rates and deposited in foreign currency equivalent.

 

How to book FCNR(B) deposit through Wire Transfer?

  1. Place wire transfer instructions to your overseas bank
  2. Mention Customer ID in Beneficiary Account number field and mention tenure details/ FCNR creation in SWIFT remarks
  3. For more details on wire transfer refer https://www.aubank.in/business-banking/swift-and-bic 
 

FAQs

 

Q1. What is the minimum amount to book FCNR(B) deposit?

The minimum amount is 1000 in any currency.

Q2. What is the tenure for which I can open an FCNR(B) Deposit?

You can maintain an FCNR deposit for a tenure ranging from 1 year to 5 years.

Q3. What will happen to my FCNR(B) deposit once it matures, and I forget about it?

The FCNR(B) will be renewed automatically, to ensure you keep on earning attractive interest rates. However, if account is opened under non-auto renewal mode, you must give us written maturity instructions.

Q4. Will I get a Cheque Book and an ATM-cum-Debit Card when I open an FCNR(B) Deposit?

No, you will not get a cheque book or an ATM-cum-debit card with your FCNR(B) Deposit.

Q5. Can I close my FCNR(B) Deposits prematurely?

You can close your FCNR(B) Deposits before the due date. However, no interest will be payable if deposit withdrawn within 1 year from the booking date.

Q6. Can I transfer the FCNR(B) FD closure proceeds to a third-party account?

FCNR(B) deposit closure proceeds need to be transferred to an account where the FCNR (B) FD holder is a primary applicant.

Q7. Can I appoint a mandate holder for my FCNR(B) Deposits account?

No, a mandate holder can be appointed only for operating savings account.

Q8. Can I have a Nominee for my FCNR(B) Deposits?

Yes, you can register a nominee for this account.

Q9. Can I transfer funds from my existing NRO account to open FCNR(B) deposit?

No, NRO funds cannot be used to create FCNR(B) deposit.

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