Canara Bank :: FCNR

FOREIGN CURRENCY NON-RESIDENT ACCOUNTS: (FCNR - BANKS)

A unique scheme to guard against currency fluctuation risk.

Features of FCNR (B):

Accounts are maintained in foreign currencies and are held in the form of term deposits only.
You can open FCNR (B) in 5 foreign currencies viz., US Dollars (USD), Pounds Sterling (GBP), Euro, Australian Dollars (AUD) & Canadian Dollars (CAD).
Remittances can also be sent in any other foreign currency, which will be converted into one of the designated currencies as specified by the remitter.
USD/GBP/EURO is accepted for a minimum period of 1 year and a maximum period of 5 years. AUD and CAD is accepted for a minimum period of 1 year and a maximum period of 3 years
Interest shall be paid in the currency of deposits. Conversion is permitted at the ruling exchange rate. Interest is not taxable.
Loans can be availed against security of these deposits in foreign currency of the Deposit as well as Rupees.
Loans can be availed against security of these deposits in foreign currency of the deposit as well as rupees (subject to a maximum of Rs. 100 lakhs).
Whenever the aggregate value of TCs/Currency Notes tendered for opening FCNR accounts exceeds USD 10000 or its equivalent in other currencies or where the value of currency notes tendered exceeds USD 5000 or its equivalent in other currencies, NRIs are required to submit Currency Declaration Form (CDF), obtained from the Customs authorities at the airport, on arrival to India.

FOREIGN CURRENCY (Non-Resident) ACCOUNT (Banks) SCHEME (FCNR(B) Account

Who can open an account	NRIs (Individuals/entities of Bangladesh/ Pakistan nationality /ownership require prior approval of RBI)
Joint account	In the names of two or more non-resident individuals with a maximum of 4 persons.
Joint account with Resident	Only with Close Relative and such Close Relative cannot operate the account
Nomination	Permitted
Permissible currencies	USD, GBP, EUR, AUD & CAD.
Repatriability	Repatriable
Type of Account	Term Deposit only
Period for fixed deposits	For terms not less than 1 year and not more than 5 years for GBP/USD and EURO and not more than 3 years for Australian Dollars and Canadian Dollars
Rate of Interest	Subject to RBI guidelines: Interest rates are displayed on our web site
Loans
a) In India
(i) to the Account holder	Permitted (Up to Rs.100 lakhs)
(ii) to third parties	Permitted (Up to Rs.100 lakhs)
b) Abroad
(i) to the Account holder	Permitted (Up to Rs.100 lakhs)
(ii) to third parties	Permitted (Up to Rs.100 lakhs)
c) Foreign Currency Loans In India
(i) to the Account holder	Permitted
(ii) to third parties	Not Permitted
Purpose of loan
a. In India
(i) to the Account holder	i) Personal purposes or for carrying on business activities. * ii) Direct investment in India on non-repatriation basis by way of contribution to the capital of Indian firms/ companies iii) Acquisition of flat/ house in India for his own residential use
(ii) to third party	Fund based and/or non-fund based facilities for personal purposes or for carrying on business activities. *
b. Abroad
To the account holder and third party	Fund based and/or non-fund based facilities for bonafide purposes.

* The loans cannot be utilized for the purpose of relending, or carrying on agriculture or plantation activities or for investment in real estate business.

Note:

a) When a person resident in India leaves India for Nepal and Bhutan for taking up employment or for carrying on business or vocation or for any other purposes indicating his intention to stay in Nepal and Bhutan for an uncertain period, his existing account will continue as a resident account. Such account will not be designated as Non-resident (Ordinary) Rupee Account (NRO).

b) We open and maintain NRE/FCNR(B) accounts of persons resident in Nepal and Bhutan who are citizens of India or of Indian origin, provided the funds for opening these accounts are remitted in free foreign exchange. Interest earned in NRE/FCNR (B) accounts can be remitted only in Indian rupees to NRIs and PIO resident in Nepal and Bhutan.

c) We extend all types of rupee loans under the “Retail lending scheme” to NRI’s