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Introduction FCNR (Foreign Currency Non Resident Deposit) is an account where a Non-Resident Individual who are the nationals of India or people of Indian origin can attain the fixed deposit in the foreign currency and can also gain the interest on it. The currencies which are permissible are dollars, Canadian dollars, Pounds, Euro, Japanese Yen and Australian dollar. It is believed that the risk of fluctuations with respect to the currency conversion is being eliminated when they have done the FCNR Deposit, because the interest offered is higher compared to the country in which they are residing. Features and Fact of FCNR Account Some of the facts and features which need to be taken care when the person concerned is opening the deposit and is planning to invest money in India. Let’s take care of the following items It could be opened only by the people who are personally of the Indian origin or NRI’s. It can be opened only in the foreign currencies due to which the elimination of the currency conversion rate is eliminated. They provide the person with the regular interest in the account. It could be deposited with the maturity of more than 1 year and less than the 5 years. It could be opened jointly with another NRI’s or the residents of the India. The facility of nomination is available and any person who is NRI/PIO/Indian Resident could be nominated In this the conversion to any other currency is permitted on the cost of the account holder. The option of Recurring depositing is not accepted into this schema The people could also avail the facility of loan against their accumulation; however the loan amount could not be utilized for the purpose of re-lending, carrying out agricultural/plantation activities or for the investment in the real estate. The one of the major benefits which is reached from the accumulation is that the interest which is earned is not taxable in India and even the principal deposit is also not taxable under the wealth tax Documents needed for opening the FCNR Account For opening the account the user should supply the following documents requested by the bank. One is the completed application form which should be attested and signed by your Banker/Embassy of India /Public notary which should be taken to the bank where you want to open the account. Aside from that you will have to furnish the copy of the Passport, visa and latest overseas bank statement in the original, and the overseas electricity and telephone bills on the original.
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