Maintain your foreign currency deposits! What This Bank Offers NRIs – Check Benefits, Interest, Concession & More

The Punjab National Bank (PNB) provides an opportunity through which Non-Resident Indians (NRIs) will be able to maintain their foreign currency accounts. Interested customers can log on to the official website of PNB at pnbindia.in, in case of any queries and further details.

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In one of its recent tweets from the official Twitter account, PNB said: “Income and deposits in different currencies, but Dil will always be Hindustani! Open an FCNR(B) account and maintain your foreign currency deposits. Read more , visit: tinyurl.com/2p8rj52e.”

What is the FCNR (B) account?
NRIs can open accounts under this scheme. The account must be opened by the non-resident account holder himself and not by the holder of a power of attorney in India.
It should be noted that deposits can be held in 5 designated currencies – US Dollar (USD), British Pound (GBP) and Euro, Australian Dollar (AUD) and Canadian Dollar (CAD).

Interested persons should be aware that these accounts can only be maintained in the form of term deposits for maturities from a minimum of one year to a maximum of five years. These deposits can be opened with funds transferred from abroad in convertible currencies through the normal banking channel, which are repatriable in nature in terms of general or special permission granted by the Reserve Bank of India. In addition, these accounts can be held with our branches, which are authorized to process foreign exchange transactions.

Advantages
The benefits of maintaining this account are:

1) No exchange risk because the deposit is maintained in foreign currency.

2) Rupee loans/overdrafts can be used by NRI depositors or third parties against the security of such deposits. However, foreign currency loans against FCNR (B) deposits in India can be obtained outside India through our correspondent banks.

3) No wealth tax and income tax is applicable on these deposits.

4) Gifts made to resident close relatives are exempt from gift tax.

interest
Interest on FCNR (B) deposits is paid on the basis of 360 days to one year. However, the depositor is eligible to earn applicable interest for a period of one year if the deposit has completed a period of 365 days.

For deposits up to one year, interest at the applicable rate will be paid without compounding. For deposits for more than a year, interest may be paid at intervals of 180 days each and then for the actual number of days remaining. However, depositors will have the option of receiving interest at maturity with a compounding effect in the case of deposits over one year.

Concessions
All account holders holding a minimum deposit of USD 5000 or its equivalent will be eligible for the following concessions in various facilities offered by the bank:

1) Free remittance up to Rs.1 lakh per annum from his account to anywhere in India subject to the recovery of disbursements.

2) No collection charges on any instrument collected from account holder’s account, up to Rs.1 lac per annum, from anywhere in India subject to collection of disbursements.

3) Deposit services: 50% discount on our bank’s service charge until deposits remain in the bank.

4) Free multi-city checkbook for CBS branch customers.

5) Installation of free lockers for customers maintaining a minimum balance of $10,000 or its equivalent.

6) No inter-branch (Intersol) transaction fees for banking transactions, by account holders, at CBS branches, free Internet Banking facility.

7) The bank will bear foreign bank charges when transferring funds to our Nostro accounts subject to a minimum deposit of USD 10,000 or its equivalent.

8) Facility for automatic renewal of fixed deposits at maturity.

9) Link to the savings account for the family at home by allowing overdraft by marking the privilege in their FCNR account.

For more details and queries, interested persons can log on to the official website of PNB at pnbindia.in.