The Foreign Currency (Non-Resident) Accounts (Banks) scheme covers deposits the following currencies:
Pound Sterling, US dollar, Canadian dollar, Australian dollar, Euro and Japanese Yen - which are accepted from non-resident individuals of Indian nationality or origin (Non-resident Indians).
FCNR(B) deposits can be made for a minimum of one year and a maximum of five years. Both principal and interest are payable in foreign currency.
Rupee loans can be taken in India against the security of FCNR(B) deposits. Foreign currency loans can also be taken at select branches of Indian banks abroad against the security of FCNR deposits.
Non-Resident (External) Rupee Account (NRE Account) can be opened/maintained in the form of savings, current, recurring or fixed deposit accounts. Such accounts can be opened only by the non-resident himself and not through the holder of the power of attorney.
Balances held in the NRE account are freely repatriable. Accrued interest income and balances held in NRE accounts are exempt from income-tax and wealth tax, respectively.
Non-Resident Ordinary Rupee Account (NRO Account) NRO can be opened / maintained in the form of current, savings, recurring or fixed deposit accounts. These accounts are denominated in rupees.
NRIs/Persons of Indian Origin can remit from the balances held in their NRO account an amount not exceeding $1 million per financial year, subject to payment of applicable taxes.
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