Operational Asepcts Of Nri Business-II
Chapter notes, video classes, MCQ practice tests and quick-revision one-liners for Principles and Practices of Banking — JAIIB.
One-liners from this chapter
Free sample — 8 of 66 rapid-fire Q&A cards.
What is the full form of FCNR(B) and what type of account is it?
FCNR(B) stands for Foreign Currency Non-Resident (Banks) account. It is a term deposit account held in foreign currency by NRIs/PIOs, where both principal and interest are fully repatriable.
What is the maximum amount an NRI can repatriate from an NRO account per financial year?
USD 1 million per financial year after tax payment.
In which currencies can FCNR(B) deposits be held?
FCNR(B) deposits can be held in any freely convertible currency such as USD, GBP, EUR, JPY, CAD, and AUD as permitted by RBI from time to time.
Can an NRE account be converted to a resident account upon return to India?
Yes, it must be redesignated as a resident account.
What is the minimum and maximum tenure for FCNR(B) deposits?
FCNR(B) deposits have a minimum tenure of 1 year and a maximum tenure of 5 years.
What is the currency denomination of an NRE account?
NRE accounts are maintained in Indian Rupees.
Are interest earnings on FCNR(B) accounts taxable in India?
No, interest earned on FCNR(B) accounts is fully exempt from income tax in India for the duration of the NRI status of the account holder.
Who bears the exchange risk in an NRE account?
The account holder bears the exchange risk.
Video classes for this chapter
More chapters in Module A - General Banking Operations
Master the full PPB syllabus
Every chapter of Principles and Practices of Banking — videos, tests, notes and one-liner decks in one place.