FOREIGN CURRENCY NON - RESIDENT (FCNR) ACCOUNT SCHEME
Chapter notes, video classes, MCQ practice tests and quick-revision one-liners for Foreign Exchange Facilities for Individuals — Foreign Exchange Facilities for Individuals.
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Free sample — 8 of 65 rapid-fire Q&A cards.
What does FCNR stand for in the context of NRI banking?
FCNR stands for Foreign Currency Non-Resident, a term for bank accounts held in India by non-resident Indians in foreign currencies.
What is the maximum tenure permitted for an FCNR(B) deposit?
Maximum tenure is five years from account opening.
In which currencies can an FCNR(B) account be maintained?
FCNR(B) accounts can be maintained in any freely convertible currency such as USD, GBP, EUR, JPY, CAD, AUD, SGD, HKD, and CHF, as permitted by RBI.
Can a PIO (Person of Indian Origin) open an FCNR(B) account in India?
Yes, PIOs are eligible to open FCNR(B) accounts.
Who is eligible to open an FCNR(B) account in India?
Non-Resident Indians (NRIs) and Persons of Indian Origin (PIOs) are eligible to open FCNR(B) accounts in India.
What is the currency risk position of an FCNR(B) deposit from the bank's perspective?
Banks bear the exchange risk on FCNR(B) deposits.
What is the minimum tenure for an FCNR(B) account?
The minimum tenure for an FCNR(B) account is 1 year, and the maximum tenure is 5 years.
Can FCNR(B) deposits be accepted in Indian Rupees?
No, FCNR(B) deposits must be in permitted foreign currencies only.
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