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Master Circular of instructions relating to deposits held in FCNR(B) Accounts

RBI/2013-14/74
DBOD.No.Dir.BC. 11 /13.03.00/2013-14

July 1 , 2013
Ashadha 10, 1935 (Saka)

All Scheduled Commercial Banks
(excluding RRBs)

Dear Sir / Madam

Master Circular of instructions relating to deposits held in FCNR(B) Accounts

Please refer to the Master Circular DBOD No. Dir. BC.8/ 13.03.00/2012-13 dated July 2, 2012 consolidating the instructions/guidelines issued to banks till June 30, 2012 relating to deposits held in FCNR(B) Accounts. The Master Circular has been suitably updated by incorporating the instructions issued up to June 30, 2013 and has been placed on the RBI website (http://www.rbi.org.in). A copy of the Master Circular is enclosed.

Yours faithfully

(Prakash Chandra Sahoo)
Chief General Manager

Encl: as above


CONTENTS

Para No.

Particulars

A

Purpose

B

Classification

C

Previous instructions

D

Application

1

Introduction

2

Guidelines

2.1

Definition of the term Deposit”

2.2

Other important features of the scheme

2.3

Manner of payment of interest

2.4

Discretion to pay additional interest on deposits of bank™s staff

2.5

Premature withdrawal of deposits

2.6

Payment of interest on overdue FCNR(B) deposits

2.7

Advances against FCNR(B) deposits Manner of charging interest

2.8

Restrictions on advances against FCNR(B) deposits Quantum of loans

2.9

Interest payable on the deposit of a deceased depositor

2.10

Addition or deletion of name/s of joint account holders

2.11

Payment of interest on FCNR(B) deposits of NRIs on return to India

2.12

Conversion of FCNR(B) Accounts of the returning Indians into RFC Account Waiver of penalty

2.13

Conversion of FCNR(B) Accounts of the returning Indians into RFC Accounts/Resident Rupee Accounts Payment of interest

2.14

Payment of interest on term deposit maturing on Saturday/ Sunday/holiday/non-business working day

2.15

Prohibitions

Annex

Interest rates on deposits under FCNR (B) Scheme

Appendix

List of circulars consolidated

MASTER CIRCULAR ON INTEREST RATES ON FCNR(B) DEPOSITS

A. Purpose

This circular consolidates the directives on interest rates on FCNR(B) deposits  issued by Reserve Bank of India from time to time.

B. Classification

A statutory guideline issued by the Reserve Bank in exercise of the powers conferred by the Banking Regulation Act, 1949.

C. Previous instructions

This Master Circular consolidates and updates the instructions on the above subject contained in the circulars listed inAPPENDIX.

D. Application

To all scheduled commercial banks, excluding Regional Rural Banks.

Click here to download the Master Circular

Tags: chartered accountantForeign Exchange Management ActIndiaMaster CircularNon-resident Indian and person of Indian originRegional Rural BankReserve Bank of IndiaSAKA

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