PNB FCNR Account

What are FCNR Deposits?

Foreign Currency Non-Resident (Banks) Accounts, commonly known as FCNR deposits, are a type of term deposit offered by Indian banks to Non-Resident Indians (NRIs). These accounts allow NRIs to deposit funds in foreign currencies, offering several benefits such as:

• No Exchange Rate Risk: Since deposits are held in foreign currencies, fluctuations in the exchange rate do not impact the principal amount.
• Tax Benefits: No Wealth Tax or Income Tax is applicable on these deposits.
• Repatriation: Principal and interest are freely repatriable in the desired currency.
• Competitive Interest Rates: PNB offers attractive interest rates on FCNR deposits.

Eligible Currencies & Deposit Terms

• Eligible Currencies: USD, GBP, EUR, AUD, CAD, JPY
• Deposit Terms: Minimum 1 year to maximum 5 years

How to Open a PNB FCNR Deposit Account?

• Remittance: Funds must be remitted from abroad through normal banking channels in convertible foreign currency.
• Account Opening: Accounts can be opened by the NRI account holder in person at authorized PNB branches.
• Eligible Remittances:
  • Remittances from abroad
  • Traveller Cheques/Currency Notes tendered on a visit to India
  • Transfers from existing NRE/FCNR accounts

Interest Payment on PNB FCNR Account

• Interest Calculation: Interest is calculated on a 360-day basis.
• Payment Frequency:
  • Deposits up to 1 year: Interest paid without compounding at maturity.
  • Deposits over 1 year: Interest can be paid at intervals of 180 days or compounded at maturity.

Advantages of PNB's Global Foreign Currency Deposit Scheme

• Concessions for High-Value Depositors:
  • Free remittances up to Rs. 1 lac per annum
  • No collection charges on instruments up to Rs. 1 lac per annum
  • Concessions on depository services
  • Free multicity chequebook
  • Free locker facility
  • Free Internet Banking
• Loan Facilities: NRIs and third parties can avail loans in rupees against FCNR deposits.

Premature Withdrawal on PNB FCNR Account

• Penalty: A 1.00% penalty on the applicable interest rate applies for premature withdrawals.
• Exceptions: No penalty for premature cancellation to renew for a longer term.

Important Notes for PNB FCNR Account

• Individuals/entities of Pakistan and Bangladesh require prior RBI approval.
• Power of Attorney holders cannot open FCNR accounts on behalf of NRIs.

Conclusion 

PNB FCNR deposit rates are subject to change based on various factors, including market conditions and the bank's internal policies. It is crucial for NRIs to regularly review the latest rates offered by PNB to ensure they are making the most of their investment opportunities. By staying informed about the current PNB FCNR rates and understanding the terms and conditions associated with these deposits, NRIs can make sound investment decisions and effectively manage their finances.