Good news for NRIs: Now higher interest rates allowed on these NRI deposits in banks till 31 March 2025 Consequently, banks are allowed to raise new FCNR(B) deposits as of today, December 6, 2024
The Reserve bank of India has announced that it has increased the interest rate ceiling on Foreign Currency Non-Resident Account FCNR(B) deposits to overnight Alternative Reference Rate (ARR) plus 400 basis points with maturities between 1 year and less than 3 years. This was announced by RBI in its monetary policy meeting held on December 06 and is aimed to attract foreign currency deposits from overseas. The new rates will be in place till March 2025.#sr_widget.onDemand p, #stock_pro.onDemand p{font-size: 14px;line-height: 1.28;} .onDemand .live_stock{left:17px;padding:1px 3px 1px 5px;font-size:12px;font-weight:600;line-height:18px;top:9px} #sr_widget.onDemand .sr_desc{margin:0 auto 0;} #sr_widget.onDemand .sr_desc{color: #024d99;margin-top:10px;} #sr_widget.onDemand .crypto .live_stock .lb-icon{8px 6px 5px 3px !important} #sr_widget.crypto.onDemand a.text{border-bottom:1px solid #ccc;padding-bottom:5px;display:block;width:100%} #sr_widget.onDemand .sr_desc .text p, #stock_pro.onDemand .sr_desc .text p{font-size:12px;font-weight:400;} The previous limit was ARR + 200 basis points, making it a noticeable rise
According to the RBI statement on December 6, 2024, “ In order to attract more capital inflows, it has been decided to increase the interest rate ceilings on FCNR(B) deposits. Accordingly, with effect from today (December 6, 2024), banks are permitted to raise fresh FCNR(B) deposits of 1 year to less than 3 years maturity at rates not exceeding ARR plus 400 bps and deposits with maturity between 3 to 5 years at rates not exceeding ARR plus 500 bps. This relaxation will be available till March 31, 2025.”
According to the RBI notification as on December 6, 2024, "It has been decided to increase the interest rates ceiling on fresh FCNR(B) deposits raised by the banks with effect from December 06, 2024 as under:
Period of DepositCeiling Rate1 year to less than 3 yearsOvernight Alternative Reference Rate for the respective currency/ Swap plus 400 basis points3 years and above upto and including 5 yearsOvernight Alternative Reference Rate for the respective currency/ Swap plus 500 basis pointsSource: RBI website
Astrology
Vastu Shastra Course
By - Sachenkumar Rai, Vastu Shashtri
Entrepreneurship
From Idea to Product: A Startup Development Guide
By - Dr. Anu Khanchandani, Startup Coach with more than 25 years of experience
Strategy
ESG and Business Sustainability Strategy
By - Vipul Arora, Partner, ESG & Climate Solutions at Sattva Consulting Author I Speaker I Thought Leader
Data Analysis
Learn Power BI with Microsoft Fabric: Complete Course
By - Prince Patni, Software Developer (BI, Data Science)
Marketing
Modern Marketing Masterclass by Seth Godin
By - Seth Godin, Former dot com Business Executive and Best Selling Author
Data Science
MySQL for Beginners: Learn Data Science and Analytics Skills
By - Metla Sudha Sekhar, IT Specialist and Developer
Office Productivity
Excel Essentials to Expert: Your Complete Guide
By - Study At Home, Quality Education Anytime, Anywhere
Artificial Intelligence(AI)
AI and Analytics based Business Strategy
By - Tanusree De, Managing Director- Accenture Technology Lead, Trustworthy AI Center of Excellence: ATCI
Artificial Intelligence(AI)
Java Programming with ChatGPT: Learn using Generative AI
By - Metla Sudha Sekhar, IT Specialist and Developer
Finance
Financial Literacy i.e Lets Crack the Billionaire Code
By - CA Rahul Gupta, CA with 10+ years of experience and Accounting Educator
Marketing
Performance Marketing for eCommerce Brands
By - Zafer Mukeri, Founder- Inara Marketers
Leadership
Business Storytelling Masterclass
By - Ameen Haque, Founder of Storywallahs
Entrepreneurship
Crafting a Powerful Startup Value Proposition
By - Dr. Anu Khanchandani, Startup Coach with more than 25 years of experience
Artificial Intelligence(AI)
Tabnine AI Masterclass: Optimize Your Coding Efficiency
By - Metla Sudha Sekhar, IT Specialist and Developer
Finance
Crypto & NFT Mastery: From Basics to Advanced
By - CA Raj K Agrawal, Chartered Accountant
Finance
A2Z Of Finance: Finance Beginner Course
By - elearnmarkets, Financial Education by StockEdge
Artificial Intelligence(AI)
Generative AI for Dynamic Java Web Applications with ChatGPT
By - Metla Sudha Sekhar, IT Specialist and Developer
Web Development
Django & PostgreSQL Mastery: Build Professional Web Applications
By - Metla Sudha Sekhar, IT Specialist and Developer
Office Productivity
Zero to Hero in Microsoft Excel: Complete Excel guide 2024
By - Metla Sudha Sekhar, IT Specialist and Developer
Artificial Intelligence(AI)
Basics of Generative AI: Unveiling Tomorrow's Innovations
By - Metla Sudha Sekhar, IT Specialist and Developer
Artificial Intelligence(AI)
Mastering C++ Fundamentals with Generative AI: A Hands-On
By - Metla Sudha Sekhar, IT Specialist and Developer
Artificial Intelligence(AI)
AI for Everyone: Understanding and Applying the Basics on Artificial Intelligence
By - Ritesh Vajariya, Generative AI Expert
Marketing
Digital marketing - Wordpress Website Development
By - Shraddha Somani, Digital Marketing Trainer, Consultant, Strategiest and Subject Matter expert
Office Productivity
Mastering Microsoft Office: Word, Excel, PowerPoint, and 365
By - Metla Sudha Sekhar, IT Specialist and Developer
If you are an NRI and wish to maintain a fixed deposit account in India, you can opt for an FCNR Account that allows you to save money earned overseas in Foreign Currency.
What is an FCNR (B) account?
According to the ICICI Bank website, “An FCNR (B) account lets you maintain a fixed deposit in India in freely convertible foreign currencies for a tenure ranging from one to five years. Since the account is maintained in foreign currency, it secures your funds against currency fluctuations during the tenure of the deposit. Like a Non-Resident External (NRE) bank account, the funds in this account and the interest earned are tax-free in India.”Most banks book FCNR deposits in the following currencies.
US DollarsPounds SterlingEuroJapanese YenAustralian DollarsCanadian Dollars
Premature withdrawals of FCNR (B) Deposits
According to the SBI website, "No interest is payable, if the deposit is withdrawn before one year. No premature penalty for the deposit withdrawn after completion of one year. However, interest shall be paid at the rate applicable for the period deposit has remained with the Bank. Interest will be paid at the rate available on the date of deposit.
What are the features of an FCNR Account?
According to the HDFC Bank website, “Here are some features of an FCNR Account that make it an extremely feasible option to invest and maintain funds in India-
FCNR Accounts are Term Deposit Accounts and not a Savings Account. Premature withdrawal is allowed by Banks but Interest is paid only post completion of 1 year.You can open an FCNR Account by transferring money from your existing Non-Resident External (NRE) Account.The interest you earn on your deposits on FCNR Accounts is tax-free, e., it is not taxable in India.The Principal amount of your FCNR deposit and the interest you earn thereon is fully repatriable, e., it is completely transferable.You can also avail an overdraft facility over your FCNR Term Deposit Account.Therefore, if you are looking for an option to save your money in foreign denominations, FCNR Accounts are an excellent choice.” #sr_widget.onDemand p, #stock_pro.onDemand p{font-size: 14px;line-height: 1.28;} .onDemand .live_stock{left:17px;padding:1px 3px 1px 5px;font-size:12px;font-weight:600;line-height:18px;top:9px} #sr_widget.onDemand .sr_desc{margin:0 auto 0;} #sr_widget.onDemand .sr_desc{color: #024d99;margin-top:10px;} #sr_widget.onDemand .crypto .live_stock .lb-icon{8px 6px 5px 3px !important} #sr_widget.crypto.onDemand a.text{border-bottom:1px solid #ccc;padding-bottom:5px;display:block;width:100%} #sr_widget.onDemand .sr_desc .text p, #stock_pro.onDemand .sr_desc .text p{font-size:12px;font-weight:400;}
This story originally appeared on: India Times - Author:Faqs of Insurances
