What is a Bank of India FCNR Account?
An FCNR account allows NRIs to maintain fixed deposits in major foreign currencies. Both the principal and the interest are fully repatriable, making it a secure way to grow overseas wealth with 100% liquidity.
A Bank of India (BOI) FCNR (Foreign Currency Non-Resident) Account is a term deposit scheme specifically designed for NRIs to maintain their savings in foreign currencies. Since the funds are held in foreign currency, depositors are protected against exchange rate fluctuations.
Features of BOI FCNR Account
Here are the features of the Bank of India FCNR Account:
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Currency Options:
You can maintain your deposit in major global currencies, including USD, GBP, EUR, JPY, AUD, and CAD.
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Flexible Tenure:
Deposits can be opened for a minimum period of 1 year (12 months) up to a maximum of 5 years (60 months).
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Full Repatriability:
Both the principal amount and the interest earned are freely repatriable, meaning you can transfer the entire sum back to your overseas account without any restrictions.
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Tax Benefits:
The interest earned on a BOI FCNR account is completely exempt from Income Tax in India.
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No Exchange Risk:
Since the deposit is maintained and repaid in the same foreign currency, you do not lose money due to rupee devaluation.
BOI FCNR Account Eligibility Criteria
Below are the eligibility criteria for people who are eligible or not eligible to open an FCNR account:
- Who can open: Non-Resident Indians (NRIs) and Persons of Indian Origin (PIOs).
- Exclusions: Residents of Nepal and Bhutan are generally not eligible. Individuals or entities from Pakistan and Bangladesh require prior approval from the RBI.
- Joint Accounts: You can open a joint account with other NRIs.
- Nomination: The facility to add a nominee is available.
Benefits of Bank of India FCNR Account
Opening a Bank of India (BOI) FCNR (B) Account offers several high-value benefits, particularly for NRIs:
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Protection Against Currency Risk
The biggest benefit is that the deposit is maintained in foreign currency (USD, GBP, EUR, JPY, AUD, or CAD). This means it is completely shielded from exchange rate fluctuations.
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100% Tax-Free Returns
Whatever you earn under the BOI FCNR Account interest is entirely exempt from Indian Income Tax. Bank of India does not deduct any TDS on the interest credited.
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Full and Easy Repatriability
Both the principal amount and the interest earned are fully and freely repatriable. You can transfer your entire maturity proceeds back to your overseas bank account at any time.
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Higher Liquidity and Loan Facilities
You can avail of loans or overdraft facilities in India against your FCNR deposit (up to 90% of the value). This allows you to access liquidity without prematurely breaking your deposit. The tenures are flexible, ranging from 1 to 5 years.
Wrapping Up
Bank of India FCNR (B) Account serves as a strategic financial tool for NRIs who want to grow their foreign earnings without the uncertainty of rupee volatility. By offering a blend of 100% tax-free interest, sovereign-grade safety, and the flexibility to repatriate funds globally. Whether you are looking for mid-term capital preservation or a secure backup for expenses in India through loan facilities, FCNR accounts are the best way to get a stable and highly liquid investment environment designed for the unique needs.
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