F C N R [ B ] ACCOUNTS

‡ ‡ ‡ ‡ GENERAL BACKGROUND Started in n1975 as FCNR [ A] Shifted in 1995 to FCNR [ B] Currencies: Sterling Pounds, US Dollars, Canadian Dollars, Australian Dollars, Japanese Yen and EURO ‡ Maturity: Minimum ONE to Maximum FIVE Years

compounding every 180 days and for remaining days till maturity .FCNR[B] ACCOUNTS FCNR [ B] INTEREST Ceiling rate of Interest : LIBOR/SWAP PLUS 100basis points FEDAI quotes the reference LIBOR/SWAP rates for 5 maturities for various currencies on last working day of the month Interest Payment for Deposits of one year without compounding Beyond one year.

FCNR[B] ACCOUNTS ‡ FCNR[B] INTEREST ‡ Discretionary additional interest up to one per cent per year for current or retired staff of bank ‡ Penalty on pre mature withdrawal may apply ‡ In case of pre mature withdrawal before ONE year no interest is payabl.e .

bank may recover SWAP costs for such withdrawals ‡ OVERDUE INTEREST etc ‡ OD Interest only up to 14 days from date of maturity .FCNR[B] ACCOUNTS ‡ FCNR[B] INTEREST ‡ If depositor is informed about penal provisions while accepting deposit.

whichever is LESSER ‡ Partial renewal after 14 days after maturity will attract bank¶s discretionary rate of interest for renewed portion for overdue period ‡ Pre mature Withdrawal of renewed overdue interest may lead to recovery of OD interest already paid.FCNR[B] ACCOUNTS ‡ OD Interest etc ‡ Interest for renewal after maturity will be interest rate at MATURITY or AT RENEWAL date . .

FCNR[B] ACCOUNTS ‡ ADVANCES AGAINST FCNR[B] DSEPOSIOTS ‡ Rate of interest may not have any link with bank¶s Base rate ‡ No fresh loans or renewal of existing loans beyond Rs One Hundred lacs. .

FCNR[B] ACCOUNTS ‡ CLAIMS ARISING FROM DEATH OF DEP[OSITOR[S] ‡ A] Before Maturity Claim: Interest at applicable rate for period run without penalty ‡ B] After Maturity : Payment of contracted rate till maturity PLUS simple interest at rate applicable at maturity for OD Period .

FCNR[B] ACCOUNTS ‡ SPLITTING OF DEPOSITS ‡ Not to be treated as premature withdrawal for levying penalty . if no change in original period and amount is involved . ‡ ADDITIOND/ DELETIONS OF NAMES ‡ Addition of only NRIs ‡ Deletions permitted ‡ Bank to satisfy itself for such request [ from ALL depositors] .

FCNR[B] ACCOUNTS ‡ RETURN OF DEPOSITOR TO INDIA ‡ Continuation of FCNR[ B] till maturity at the option of depositor ‡ Deposit to be categorise3d as Resident Deposit after return of depositor to India ‡ Pre mature withdrawal subject to penal provisions ‡ µOn maturity conversion to Resident Deposit or RFC if eligible. .

FCNR[B] ACCOUNTS ‡ RETRUN OF DEPOSITOR TO INDIA ‡ No penal provisions for pre mature conversion from FCNR to RFC where eligible ‡ Payment of interest on deposits maturing on Saturday/ Sunday/ Bank Holiday/ Non Banking Working Day on maturity amount and in case of ordinary Term Deposit on Principal amount. .

‡ Currency wise minimum quantum of deposit for differential rate of interest permitted ‡ Deferential rate of interest subject to overall ceiling rate prescribed by RBI .FCNR[B] ACCOUNTS ‡ PROHIBITIONS ABOUT FCNR[B] DEPOSITS ‡ No acceptance/ renewal of deposit for more than FIVE Years ‡ Non discrimination on interest rate between deposits accepted on same day and for same maturity .

selling any deposit products on remuneration/ commission in any form ‡ No acceptance of interest free deposits .FCNR[B] ACCOUNTS ‡ PROHIBITIONS [ CONTINUED] ‡ No negotiation between customer and bank on interest rates ‡ No payment of brokerage/ commission/incentives in ant form on FCNR[B] deposits mobilized ‡ No appointment of agent for collection of deposits.

NRO/ NRE ACCOUNTS ‡ NRO ACCOUNTS ‡ Current. term Deposits ‡ Non repatriable principal . savings. but repatriability of current income and interest earned ‡ Repatriation up to USD 1 million per year from the account of sale proceeds of assets/ assets acquired by way of inheritance/ legacy subject to T & C ‡ TDS n Interest Income .

deposits of currency / TCs etc on personal visit of NRI customer to India .NRO/ NRE Accounts ‡ NRE Accounts ‡ Repatriable accounts ‡ Current. savings and Term Deposit accounts ‡ Transfer of funds from FCNR{B] and NRE accounts ‡ Remittances from abroad.

NOR/ NRE Accounts ‡ NRE Accounts ‡ For local payments in INR and for remittances overseas ‡ INTEREST REGULATIONS ‡ Banks free to decide interest rates across all maturities ‡ NRE[ FD] Maximum interest LIBOR/SWAPPLUS 175 Basis points. ‡ NRE SB interest rate same as Domestic SB accounts .

NRO/NRE Accounts ‡ TENOR AND INTEREST RATES ‡ NRO [ TD] MINIMUM 7 days ‡ NRE[TD] Minimum 1 year and maximum above three years also . ‡ Interest on NRE TD above 3 years NOT to exceed interest on NRE[ TD] for three years ‡ No Interest on CA. On SB at Domestic rate .

on daily products basis Credit to NRO/ NRE Account or remittance abroad as per instructions of depositor .NRO/ NRE Accounts ‡ ‡ ‡ ‡ INTEREST PAYMENT On TD at quarterly or longer rests ON SB .

NRO/ NRE Accounts ‡ PREMATURE WITHDRAWAL OF TD ‡ NO pena. .lty for pre mature conversion from NRE[TD] to RFC account ‡ Conversion from NRE to FCNR [B] and vice versa before maturity subject to penal provisions ‡ Conversion of NRNR/ NRSR to NRO before maturity subject to penal provisions.

NRO/ NRE Accounts ‡ ADVANCES ‡ Advances against NRE[TD] at interest rates freely decided by banks ‡ Such advances may be repaid out of maturity proceeds of deposit/ INR resources/ Remittances from abroad ‡ Loans not to exceed [ Fresh/ Renewal] Rs 100 Lacs ‡ Loans to depositor / third party permitted. .

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