In the form of TERM DEPOSITS only. Reinvestment plan (RIP) deposit accounts are also allowed. (It may please be noted that FCNR accounts cannot be opened in the form of current accounts or savings accounts)

FCNR deposits : Minimum : One year and
Maximum : Three years

This is worked out and announced by authorized dealers on the basis of the guidelines issued by Reserve Bank.

No. Under the prevailing exchange control regulations, FCNR deposits cannot be held jointly with persons who are resident in India.

Yes. Both the principal amount and the interest earned on the FCNR deposit can be repatriated to any foreign country as per the choice of the depositor.

No. Interest income earned on FCNR deposits is exempted from Indian income tax.

Gift Tax has since been abolished in India.

Yes. FCNR deposit accounts can be opened from out of the value of U.S. Dollar notes and travellers cheques brought in by you from abroad. According to the existing regulations, the depositor will be required to go over to the bank in person and present the instruments. Additionally, in the case of travelers cheques, they should be countersigned by the depositor in the presence of the bank official. Another requirement is that if the total amount of travelers cheques and currency notes brought into India from abroad exceeds the following value limit, then the particulars should have been declared in the Currency Declaration Form (CDF) by the incoming traveler at the time of his entry into India: Travelers cheques and currency notes : total value : USD 10,000 Currency notes only : USD 5,000 If the value does not exceed the limits mentioned above, then declaration on form CDF is not required. The CDF form should be presented to the bank at the time of opening of the FCNR deposit account for verification and endorsement.

Yes. This is permitted. Rupee amount withdrawn from the NRE account will be converted into the designated foreign currency at the T.T. selling rate prevailing on the date on which the conversion takes place.