The 60-second version
FCNR(B) deposits continue until maturity after return — RBI allows redesignation to RFC or resident foreign currency account; premature withdrawal loses FCNR tax benefit and may trigger FEMA reporting.
FCNR(B) is foreign-currency sovereign yield — do not break tenure early unless FX and tax math justify it
FCNR(B) accounts are denominated in USD, GBP, EUR, JPY, AUD, CAD, or SGD — interest is exempt for NRI; on return, account continues till maturity per RBI Master Direction.
Bank redesignates status within six months of return — FCNR may convert to RFC deposit or resident FCNR per bank policy; confirm AD-1 bank letter.
Banking hub: NRE vs NRO vs resident for parallel account map.
FCNR after return
| Stage | Account | Action |
|---|---|---|
| Return day | FCNR(B) | Notify bank |
| 6 months | RFC or resident FCNR | Redesignation |
| Maturity | INR or wire | Repatriate or convert |
| Interest | Tax-exempt NRI | Taxable if resident |
FCNR path
Notify AD bank
Return date proof.
KYC update
Resident status.
Hold to maturity
Unless FX need.
RFC decision
Keep FCY or convert.
Schedule FA
If foreign balance.
Flow
FCNR kit
- FCNR stmt.
- Maturity date.
- Redesignation letter.
- FIRC if wire.
- Form 15CA if outward.
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vs NRE?
NRE is rupee-denominated repatriable; FCNR is foreign currency fixed deposit — different FX risk profile.
Premature?
Breaking FCNR early may forfeit interest benefit and attract penalty — model tax and FX first.
Joint?
Joint FCNR with resident relative may need redesignation — see joint account rules guide.
Interest tax?
NRI period interest exempt; post-residency interest may be taxable — confirm with CA for transition year.
USD 1M?
FCNR maturity proceeds repatriate under FEMA current account rules — NRO USD 1M cap applies to NRO balances separately.
FBAR?
US person — FBAR if foreign account aggregate exceeded USD 10K during calendar year.
Your NRE account redesignation has a deadline.
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