<p>FCNR Meaning is foreign currency non-resident accounts and it is the type of NRI bank account. So if you are a Non-resident of India and want to manage for FD in India then the FCNR account belongs to you. This account enables NRIs to save their hard-earned money from different countries. Most of the banks book deposits in selected currencies. Including US Dollars, Pounds Sterling, Euro, Japanese Yen, Australian Dollars, and Canadian Dollars.</p>
<p>Excited to know more about this type of NRI account? If yes then it is a perfect place to discover more about it. In this blog, we will discuss the features, eligibility criteria, permissible credits, their type, and many more. So stay tuned and become familiar with FCNR.</p>
<h2>What is the FCNR Account?</h2>
<p>It is one of the best types of NRI accounts and non-resident Indians will get good returns on their foreign currency. Alongside your money will be held in denominations of foreign that also reduce the risk of exchange rate fluctuations. Additionally, the FCNR account ensures risk-free returns. Let's check its features and become more familiar with this type of NRI account.</p>
<h2>Features of the FCNR Account</h2>
<p><img src="https://visament.com/editor_image/mceu_31582568611742298624293_1742298623.png" alt="FCNR Account"></p>
<ul>
<li><strong>The Tenor of FCNR Deposits:</strong> Minimum 1 year, and a maximum period of 5 years.</li>
<li><strong>Tax Implications: </strong>The income from interest is free from an Indian income tax, but if you relocate to India then need to pay tax subject to the person's tax status.</li>
<li><strong>Deposit Money in Foreign Currencies:</strong> In the FCNR account holder can deposit money in USD, GBP, EURO, CAD, JPY, or AUD.</li>
<li><strong>The Deposit is Opened: </strong>NRIs / PIOs / OCIs can deposit money in this account. </li>
<li><strong>No Exchange Loss:</strong> Both principal and interest are payable in foreign currency which reduces the risk of exchange loss on principal and interest amount. </li>
<li><strong>Permissible Account Types: </strong>Term Deposit and Special Term Deposit. </li>
<li><strong>Transferable funds:</strong> If you deposit funds in this account then they can be transferable from an NRE / FCNR (B) account or an NRO account.</li>
<li><strong>Loans are Available: </strong>FCNR account holders can apply for loans in foreign and Indian currency.</li>
<li><strong>Premature Withdrawals: </strong>There is no need to pay interest if the deposit is withdrawn before one year.</li>
</ul>
<p>After knowing the features of the FCNR account are you excited to open a foreign currency non-resident account? If yes then it is necessary to know the eligibility criteria of this account. So let’s start an embarking journey and shed light on the eligibility you need to fulfill for the FCNR account.</p>
<h2>Eligibility Criteria of Foreign Currency Non-Resident Account</h2>
<p>To open an FCNR account you should be a Non-Resident Indian (NRI), Person of Indian Origin (PIO), or Overseas Citizen of India (OCI).</p>
<p>Applicant should be a citizen as per the Citizenship Act, of 1955.</p>
<p>To open the FCNR account candidates have held an Indian passport at some point.</p>
<p>Submit all the documents required for FCNR including employment/Residence Visa or Work/Residence Permit, Valid passport, Recent passport-size color photograph, Copy of your PAN card or Form 60 from India, and Address evidence in your country of residence.</p>
<p>If you are eligible to open an FCNR account then it is worth knowing the permissible credit of this account. Let's check out the FCNR permissible credits.</p>
<h3>FCNR Permissible Credits</h3>
<ul>
<li>Transfer from NRE / FCNR (B) account.</li>
<li>Transfer from NRO account based on the limit.</li>
<li>Fresh remittance from abroad through banking channels.</li>
<li>Personal cheques drawn on foreign account.</li>
<li>Foreign Currency Notes / Traveler cheques tendered by NRI / PIO / OCI while visiting India.</li>
</ul>
<p>There are two types of Foreign Currency Non-Resident Account. In the next part of this blog, we will lighten up the types of FCNR accounts.</p>
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<h2>Types Of FCNR(B) Accounts</h2>
<h3>Term Deposits (TDR):</h3>
<p>TDR is a type of FCNR account for a specified term in which an investor deposits a certain amount of money which accrues interest over that time. This account also contains or offers the mentioned services below.</p>
<ul>
<li>Interest is paid for 180 days from the date of the Term Deposit.</li>
</ul>
<ul>
<li>Fixed tenure is available on foreign currency deposits.</li>
</ul>
<ul>
<li>Minimum Deposit of USD 1000, GBP 1000, EURO 1000, CAD 1000, JPY 100000, or AUD 1000</li>
<li>Principal and Interest amounts are fully returnable.</li>
</ul>
<ul>
<li>Nomination facility available.</li>
</ul>
<ul>
<li>Account holders can avail of a loan/overdraft against the deposit.</li>
</ul>
<ul>
<li>Premature withdrawal is available.</li>
</ul>
<ul>
<li>Automatic renewal on maturity for the same period.</li>
</ul>
<h3>Special Term Deposits (STDR):</h3>
<p>A Special Term Deposit (STDR) account is another type of FCNR account that pays interest at the end of the deposit term and on compound interest. There are several benefits or services that you can enjoy after becoming an STDR account holder.</p>
<ul>
<li>The account holder will get higher returns, with interest both on their deposit and on the interest.</li>
</ul>
<ul>
<li>Foreign Currency deposits of fixed tenure.</li>
</ul>
<ul>
<li>Minimum Deposit of USD 1000, GBP 1000, EURO 1000, CAD 1000, JPY 100000, or AUD 1000.</li>
</ul>
<ul>
<li>Principal and Interest amounts are fully refundable.</li>
</ul>
<ul>
<li>Nomination facility available.</li>
</ul>
<p>Several NRIs want to raise loans against the FCNR account. Are you looking for the same? If yes then do not worry now next we will shed light on loans against FCNR (B) accounts.</p>
<h2>Loans Against FCNR (B) Account</h2>
<p>FCNR account holders can raise a request for a loan to 95% of the amount. According to the new RBI guidelines in force, foreign currency loans are allowed to depositors/third parties without any maximum limit and will be subject to normal margin requirements. Apart from this transferring the funds from one account to another is important for everyone. So next we will discuss how to transfer funds from FCNR (B) to the Overseas account.</p>
<h2>How to Transfer From FCNR (B) To Overseas Account</h2>
<p>There are two ways to transfer funds from the FCNR account to the Overseas account let's check out both of them and become familiar.</p>
<h3>Through Internet Banking (INB)</h3>
<p> By adopting this way to transfer money from FCNR to the overseas account you need to add a beneficiary. To raise a fund transfer request for you and a third party from the NRE savings account to the FCNR account after adding beneficiary and request for remittance in his/her favor.</p>
<h3>Through Branch</h3>
<p>To Transfer funds from the FCNR account to the <a href="https://visament.com/blog/nre-account">NRE account</a> you need to download a standard request letter. After that, you need to fill out the form and post it to your home branch to transfer funds.</p>
<p>After knowing this many things about the FCNR account. It's time to know the steps to follow by which you can easily open this account.</p>
<h2>Steps to Open an FCNR (B) Account</h2>
<p>You can apply for a Foreign Currency Non-Resident account easily just by following three basic steps. So let's discover them and make the procedure to open an FCNR account easier for our readers.</p>
<p><strong>Step: 1. Check Eligibility:</strong> Ensure that you are fulfilling the eligibility criteria.</p>
<p><strong>Step: 2. Gather Documents:</strong> Including Valid passport, Visa, Proof of <a href="https://visament.com/blog/nri-status-explained-criteria-tax-and-compliance">NRI status</a>, and other essential documents.</p>
<p><strong>Step: 3. Apply:</strong> Visit a bank branch or apply online.</p>
<p>Besides this, many NRIs want to open an FCNR joint account. Are you among them? If yes then the next part of this blog is going to be beneficial for you.</p>
<h2>FCNR Joint Account For Non-Residents with Residents</h2>
<p>If you are an <a href="https://visament.com/blog/who-qualifies-to-be-an-nri-pio-or-oci">NRI/PIO/OCI</a> card holder then you can open and maintain their FCNR (B) accounts with your resident relative(s), but for that, you need to match the below-mentioned conditions.</p>
<p>The person you choose as co-applicant should be a member of a Hindu Undivided Family.</p>
<p>They are husband and wife or should have blood relations with each other.</p>
<h2>Get Assistance for Your FCNR Account from Visament</h2>
<p>After reading this blog on the FCNR account readers will get to know many things related to this type of NRI bank account. Above we discussed what is the FCNR account, its features, eligibility criteria, types of FCNR account, and many more.</p>
<p>So are you a non-resident Indian and want to open an FCNR account without facing any hurdles? If yes then we recommend you to hire Visament. It is one of the best immigration service providers and helps its clients with passports, visas, OCI, opening different types of <a href="https://visament.com/blog/nri-bank-account">NRI bank accounts</a>, and many more.</p>