How to open an FCNR account in an Indian bank (2023)

Indian banks offer FCNR accounts to help NRIs earn interest on foreign currency earnings. Read on to learn more about the different features and benefits of FCNR accounts with Indian banks, interest rates, eligibility and how to open an account.

What is the FCNR of Indian banks?

A Foreign Currency Non-Resident Account (FCNR) is a fixed deposit account offered by many Indian banks to NRIs. Account holders can receive attractive fixed interest rates for a certain period of time. What is special about FCNR accounts is that the funds are held in foreign currency rather than Indian rupees.

Indian banks provide NRIs with FCNR accounts in six different currencies. These accounts can accrue interest for one to five years. If you are already a customer of an Indian bank but reside outside of India for most of the year, an FCNR account can be a good option.

How to open an FCNR account in an Indian bank?

Indian Bank customers with an existing NRI relationship can do thisInternet-Banking-Portal. Alternatively, existing customers can also contact us personally atEligible Indian Bank NRI brancheson a visit to India.

NRIs without an Indian bank account must register with the bank and complete KYC verification before opening an FCNR account.

Below is the procedure for opening an FCNR account with Indian banks. ²

Open an FCNR account with Indian Bank online.

Indian bank customers can sign upInternet-Banking-PortalAnd request opening a deposit from the dashboard.

Another option is that eligible NRIs can visit Bank of India official website for openingOnline FCNR Account. However, be aware that the process is slower than Bank of India online banking portal.

1. downloadregistration formfrom the site.
2. Fill out the application form and enter your details.
3. Choose the currency and duration of the deposit.
4. Print out the application form.
5. Sign the application form.
6. Attach the required documents and submit the form to the nearest Indian bank branch.

If you need assistance with this process, you can contact Bank of India NRI Services:

• by E-mail:HeadOffice.NRI@bankofindia.co.in
• Send to one of the districts by phone or emailIndian Bank NRI has branches across India。

Personally open an FCNR account with Indian Bank

NRIs can open FCNR accounts in Indian bank branches in person during their visit to India.

1. Visit aBank of India NRI branches, or contact your local Indian bank branch to see if they can help you open an NRI account.
2. Application to open an FCNR account.
3. Fill out the account opening form.
4. Submit copies of required documents and provide originals for verification if necessary.
5. Replenish the account with money from abroad.

As we continue through this article, we will tell you what documents you will need and how to transfer funds to your FCNR account.

Bank of India FCNR rates

Interest rates on FCNR accounts at Indian banks depend on the foreign currency you open the account in and the tenor of the deposit. In general, interest rates on FCNR accounts are more attractive than interest rates on deposits in the same currency outside of India.

here hasBank of India FCNR ratesDepotconto:

1 year to less than 2 years fixed deposit

2 years to less than 3 years fixed deposit

3 years to less than 4 years fixed deposit

4 years to less than 5 years fixed deposit

5 years fixed deposit

Prices will be reviewed on April 27, 2023.

Pay attention:

• Bank of India FCNR deposit rates are subject to change.

drop out early

You can withdraw funds from your FCNR account in Bank of India before the term expires. And money can be transferred from India. However, if the account is closed before 12 months have elapsed, you will not receive any earned interest. Closing your account after 12 months will incur a 1% penalty.

How to transfer funds to Indian bank FCNR account?

In order to earn interest on your Indian Bank FCNR account, you need to make a deposit. Funds must be from abroad unless you are renewing an existing FCNR or have an NRE account in India. Here are some ways to send money to an FCNR account at an Indian bank:⁴

• Money transfer:Money transfer services are available worldwide to fund your Indian Bank FCNR deposit account from abroad. These services are available through websites or apps and are usually cheaper than banks. Remember to shop around and compare transfer fees and exchange rates to get the cheapest transfer.
• International transaction:Bank of India is part of the global SWIFT network, which allows banks to send money to each other. You can fund your FCNR account by wire transfer from your country and bank. This method can be slow or expensive. Therefore, check the delivery times as well as your exchange rates and fees.
• Transfer from existing NRE or FCNR account:You can fund your new account by transferring funds from your existing FCNR account. You can also use your NRE account in India. The amount of Indian Rupee in your NRE will be converted into the specified foreign currency by the Bank of India at the current exchange rate.
• Foreign Currency Notes:NRIs can fund their FCNR accounts by depositing foreign currency bills or foreign travelers checks when visiting Indian bank branches.

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Features and Benefits of Indian Bank FCNR Account

One of the biggest benefits of an FCNR account is that you can operate the account in a foreign currency while earning Indian interest rates. It also protects your income from fluctuations in the Indian Rupee exchange rate. Below are some of the additional features of FCNR accounts at Indian banks.

• Indian banks offer six global currencies.
• Principal and interest can be remitted back to your country of residence.
• Interest earned in India is tax free.
• You can open a joint account with another NRI.
• You can use your FCNR account as collateral for a loan.

If you prefer to use online or digital services to manage your money, Indian banks may not suit your needs. If you are also looking for more loan term options and currencies, consider other Indian banks.

Who can open an FCNR account with an Indian bank?

Any NRI or Overseas Citizen of India (OCI) can open an FCNR account with an Indian bank. When opening an account, you may be asked to provide proof that you remain a non-resident.

Indian citizens who are outside of India more than 182 days per year are considered NRIs. ⁵

NRIs returning to India are considered returning Indians by the Bank of India and are eligible to openRFC-Accounton the other hand. ⁶

Documents Required to Open an FCNR Account with Indian Bank

If you have an existing banking relationship with an Indian bank, you can open an account online and may only be required to provide proof that you are still an NRI.

However, if you are new to Indian banks, you will need to provide proof of identity and proof of residence to open an account. Here are some documents you may need:

• Photocopy of passport
• Copy of work or residence permit (if applicable)
• Copy of OCI card (if applicable)
• Proof of address abroad
• Two passport photos

You must sign each copy and Bank of India reserves the right to request any other required documents.

Available currencies for FCNR accounts at Indian banks

You can open an FCNR account with an Indian bank in any of the following six currencies:⁷

• Dollar
• British pound
• EUR
• Yen
• Canadian dollar
• Australian dollar

Sources used in this article:

1. Indian Bank FCNR account
2. Opening an FCNR account with Indian Bank
3. Bank of India FCNR deposit rates
4. Send funds to India
5. Who are NRIs?
6. NRI Information for Account Basic Inquiries - BOI
7. Documents required to open an FCNR account with an Indian bank

Cover photo ofRomain Dancre on Unsplash。