- FCNR stands for Foreign Currency Non Resident Account .
- It is not a type of saving account rather than it is a type of fixed currencies for foreign currencies .
- The FCNR accounts are type of term deposit accounts which are maintained by the NRIs and PIOs .
Difference between FCNR and FCNR (B)
The basic difference between FCNR and FCNE (B) is mentioned below :
FCNR (B) was introduced to replace the already prevailing FCNR scheme which was known as FCNR A .
- In FCNR A the foreign risk exchange was borne by RBI and later on by the government of India.
- The FCNR A was removed dur to its quasi – fiscal costs to the government .
Who can open a FCNR account ?
The FCNR (B) account has provision for the nomination facility like usual FD account … etc .
An Indian resident can also be the nominee for the account .
This account can be closed permanently if required by the account holders.
In case the account holder if wishes to earn interest on the same , the account should be functional for a minimum time period of 1 year .
