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FCNR Foreign Currency Non Resident Account
Posted: Sun Jan 14, 2007 7:47 pm
by Desi
Thread starter for FCNR Accounts.
Links:
RBI Link
Another RBI Link
FCNR Fixed Account FAQ link to ICICI Bank
FCNR accounts are not available as savings / current but only with Fixed Deposit options.
FCNR Foreign Currency Non Resident Account
Posted: Sun Jan 14, 2007 7:53 pm
by Desi
FCNR accounts are opened in foreign currency by NRIs with foreign remittances.
FCNR accounts are offered as Fixed Deposits
The Interest earned on FCNR accounts is exempt from tax and reporting in India for NRIs and those with RNOR status.
Interest earned on FCNR Accounts may be taxed in your country of residence
USA expects interest earned on FCNR accounts to be reported on tax forms
The Indian bank will most likely not issue form 1099 (that is a US form)
Indian bank statement will provide information on interest earned
Indian bank may provide you with an Interest Earned Certificate.
FCNR account may be continued till maturity upon return to India for residency after which it must either be converted or redignated to a resident account or to an RFC account.
FCNR Foreign Currency Non Resident Account
Posted: Mon Feb 26, 2007 12:47 am
by karthikik
Hello,
I have an FCNR account and it has matured, I would like to transfer it to my bank account here in the USA. Is there any thing that I need to be aware of regarding USA finance and tax laws relating to FCNR investment.
Thanks in advance for any pointers and guidance in this regard.
Cheers,
Karthik
FCNR Foreign Currency Non Resident Account
Posted: Mon Feb 26, 2007 8:46 am
by Desi
Interest earned on FCNR account by US residents is taxable by US.
There are requirement to report interest in foreign accounts exceeding $10K in any year to treasury on form TDF 90 (Google for the exact form #).
FCNR Foreign Currency Non Resident Account
Posted: Wed Feb 28, 2007 9:26 pm
by nsk
Hi Desi and others!
I have a FCNR account opened on Jan 13 of 2006 with 2 year mature period ending on Jan 13 2008. I took 90% loan against that deposit for some investments india. Do I need to pay taxes to IRS for year 2006 even if the deposit is not matured or do I need to pay taxes once it is matured?
FCNR Foreign Currency Non Resident Account
Posted: Thu May 24, 2007 10:40 pm
by cool_r2i
I am thinking of opening FCNR account and will be returning to India soon (within an year). Amount will be less than 10,000$. So, I have some questions and would appreciate your answers.
a) Is FCNR better than US Bank account in terms of interest earned?
b) Can I transfer the amount to US Bank account after maturity? I think the maximum term allowed is 60 months.
c) What are the tax implications in India and in US? I think I will not be filing US tax returns since I am Indian citizen and by that time will be residing in India.
FCNR Foreign Currency Non Resident Account
Posted: Fri Nov 23, 2007 3:32 am
by bobo2000
Does anyone have any experience with Citibank FCNR accounts ? How easy is repatriating the money ? Is there an issue with safety verses a nationalized bank like SBI ?
FCNR Foreign Currency Non Resident Account
Posted: Fri Nov 23, 2007 8:31 am
by submarine66
bobo2000;59378Does anyone have any experience with Citibank FCNR accounts ? How easy is repatriating the money ? Is there an issue with safety verses a nationalized bank like SBI ?
I have in the past repatriated FCNR deposits with both Citibank and SBI. Have never faced an issue, it has always been "no questions asked". It takes a few days to get the money reflected into the US account. Once with SBI, my money went into "no-man's land" for a week or two before it was tracked down, and deposited into my US account.
FCNR Foreign Currency Non Resident Account
Posted: Tue Sep 12, 2017 7:41 am
by deepakbh899
Hi
I wanted to get feedback on opening FCNR ? Is it a good idea to open Checking Account with SBI ( New York ) and transfer USD into it from local bank.
Then, transfer USD to SBI India for opening FCNR.
FCNR Foreign Currency Non Resident Account
Posted: Wed Feb 14, 2018 8:30 am
by plansup
Does anyone have any experience with FCNR with forward cover?
I've got an email from my bank SBI , but dont quite understand it
Yields are quite attractive upto 8.5% for 5 years deposit ( 7.3% for 1 year). From what I understand, your deposits will be in INR only (unlike FCNRs which are in USD, GBP etc.) but you go into contract with bank at fix exchange rate at future date. So even if rupee devalues, you will get a favorable exchange rate. However if dollar( or foreign currency) devalues you dont get to benefit from it, even though your deposits are in INR. Since SBI itself is offering a higher rate that normal NRE deposits(or even domestic deposits), looks like they are betting on a stronger rupee in future.
Any comments/suggestions would be greatly appreciated. Even better , if you have dealt with them in past and dont mind sharing your experiences