👉Concept
FCNR stands for "Foreign Currency Non Resident Account."
It allows NRIs to invest foreign currency in term deposits in India that too in their preferred currency.
💵💷💴💶
FCNR stands for "Foreign Currency Non Resident Account."
It allows NRIs to invest foreign currency in term deposits in India that too in their preferred currency.
💵💷💴💶
👉 Who can Open and Operate FCNR Account?
It can be opened and operated by NRI, PIO or OCI card holder.
It can be opened and operated by NRI, PIO or OCI card holder.
👉 How FCNR Accounts different from NRE/NRO Accounts?
NRE/NRO accounts can be in form of Savings, Fixed Deposit, Recurring Deposits etc. in "Indian Currency."
FCNR accounts can be only in Fixed Deposits that too in "Foreign Currency"
NRE/NRO accounts can be in form of Savings, Fixed Deposit, Recurring Deposits etc. in "Indian Currency."
FCNR accounts can be only in Fixed Deposits that too in "Foreign Currency"
👉 Operations of FCNR Accounts
▪️ FCNR accounts can be opened "Jointly" with another NRI's.
▪️ Fixed Deposits with FCNR can be of maturity between 1 to 5 years only.
▪️ Majority banks does not provide interest on withdrawal before 1 year.
▪️ FCNR accounts can be opened "Jointly" with another NRI's.
▪️ Fixed Deposits with FCNR can be of maturity between 1 to 5 years only.
▪️ Majority banks does not provide interest on withdrawal before 1 year.
👉 Credits in FCNR Accounts
Credits can be Through 👇
▪️ Foreign Income
▪️ Freely repatriable Indian Income (which same allowed to park in NRE accounts)
Credits can be Through 👇
▪️ Foreign Income
▪️ Freely repatriable Indian Income (which same allowed to park in NRE accounts)
👉 Payments from FCNR Accounts
Funds from FCNR account can be used for making local or Foreign payments.
👉 Repatriation
There is absolute NO Restrictions on repatriation on funds in FCNR Accounts unlike with NRO.
This is one of the main reason most NRI's prefer FCNR.
Funds from FCNR account can be used for making local or Foreign payments.
👉 Repatriation
There is absolute NO Restrictions on repatriation on funds in FCNR Accounts unlike with NRO.
This is one of the main reason most NRI's prefer FCNR.
Repatriation can be done WITHOUT any Restriction or Approval for⤵️
▪️Foreign Investments
▪️Buying Property in Foreign Country
▪️Payments for Education, Medical reasons or other
Also, can invest in India from FCNR funds in a areas allowed to NRI as per the guidelines of @RBI
▪️Foreign Investments
▪️Buying Property in Foreign Country
▪️Payments for Education, Medical reasons or other
Also, can invest in India from FCNR funds in a areas allowed to NRI as per the guidelines of @RBI
👉Taxability
Interest earned on FCNR deposits is TAX FREE as per @IncomeTaxIndia , it may be taxable in the country of residence of NRIs.
Since, FCNR deposits are in Foreign Currency these are free from forex rates fluctuation risks.
These are major advantages of FCNR.
Interest earned on FCNR deposits is TAX FREE as per @IncomeTaxIndia , it may be taxable in the country of residence of NRIs.
Since, FCNR deposits are in Foreign Currency these are free from forex rates fluctuation risks.
These are major advantages of FCNR.
👉 Residential Status Changed
If one becomes Resident while holding FCNR account, interest earned after becoming resident will TAXABLE in India 🇮🇳
3⃣ Options (IMP)
1⃣ Close account on becoming resident
2⃣ Hold till maturity
3⃣ Transfer to RFC A/c (Resident Foreign Currency)
If one becomes Resident while holding FCNR account, interest earned after becoming resident will TAXABLE in India 🇮🇳
3⃣ Options (IMP)
1⃣ Close account on becoming resident
2⃣ Hold till maturity
3⃣ Transfer to RFC A/c (Resident Foreign Currency)
👉 Loans
NRI's can avail loans against FCNR accounts as well.
Leading banks like @HDFC_Bank @ICICIBank @TheOfficialSBI @dbsbank @Citibank @HSBC_IN banks provide these facilities.
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NRI's can avail loans against FCNR accounts as well.
Leading banks like @HDFC_Bank @ICICIBank @TheOfficialSBI @dbsbank @Citibank @HSBC_IN banks provide these facilities.
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I hope you have got some idea about FCNR accounts. Thank you.
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@Spaysocial @investyadnya @AdeParimal @gaurav28jain
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