Foreign Currency Non-Resident (Bank) Accounts

Current Context : The Reserve Bank of India (RBI) recently hiked the rate ceilings on Foreign Currency Non-Resident (Bank) [FCNR (B)] accounts to support foreign flows.

About FCNR(B) Account:

• A term deposit account that can be opened by Non-Resident Indians (NRIs) and Persons of Indian Origin (PIOs).
• The account can be held in any freely convertible foreign currency.

Other NRI Bank Accounts:

1. Non-Resident (External) Rupee Account (NRE):
   1. Can be opened in Indian Rupees.
   2. Available as Savings, Current, Recurring, and Fixed Deposit accounts.
   3. Exclusively for NRIs or PIOs.
2. Non-Resident Ordinary Rupee Account (NRO):
   1. Also held in Indian Rupees.
   2. Available as Savings, Current, Recurring, and Fixed Deposit accounts.
   3. Can be opened by residents outside India for bonafide transactions in rupees.