Now Reading: FCNR(B) joint accounts: NRIs can add resident relatives as joint holders
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FCNR(B) joint accounts: NRIs can add resident relatives as joint holders
FCNR(B) joint accounts: NRIs can add resident relatives as joint holders
Non-Resident Indians (NRIs) and Overseas Citizens of India (OCIs) can open Foreign Currency Non-Resident Bank (FCNR) accounts jointly with eligible resident relatives, but only on a 'Former or Survivor' basis where the…
Non-Resident Indians (NRIs) and Overseas Citizens of India (OCIs) can open Foreign Currency Non-Resident Bank (FCNR) accounts jointly with eligible resident relatives, but only on a 'Former or Survivor' basis where the NRI is the first holder. The rules, outlined on the State Bank of India (SBI) website and confirmed by IDFC FIRST Bank, allow only one resident relative as a joint holder.
Eligible resident relatives include spouses, parents, children and their spouses, and siblings. The account must be funded through foreign currency remittances from overseas, transfers from another FCNR account, or from an NRE account. A key benefit is that both the principal and interest on FCNR deposits are exempt from income tax in India and are fully repatriable.
NRIs can also open joint FCNR accounts with up to three other NRIs under modes including 'Either or Survivor' or jointly. The same joint-holder rules apply to Non-Resident External (NRE) and Non-Resident Ordinary (NRO) accounts.
Indian Opinion Analysis
The FCNR(B) account is the only foreign-currency deposit in India that offers both tax-free interest and full repatriability, making it a preferred vehicle for NRIs who want to hold foreign currency but benefit from typically higher Indian deposit rates. The 'Former or Survivor' clause means the resident joint holder can operate the account only after the NRI's death, preventing day-to-day transactions by the resident. This protects the NRI's tax and repatriation status but limits the convenience of joint holding. For an NRI seeking easier management while abroad, the NRE savings account, which allows a resident relative as a joint holder with full operating rights, may be more practical, though it does not offer tax-free interest. The next step for an NRI is to verify with their bank whether the proposed relative fits the specified list and to insist on the correct operating mode to avoid compliance issues.
Source: livemint.com
This story was synthesised by AI from the source linked above.
