Can a person employed in Bhutan or Nepal open NRE/FCNR accounts or Fixed Deposits in foreign currency?
A9. No. Persons resident in Bhutan and Nepal cannot normally open NRE accounts/FCNR deposits except where the funds to these accounts are remitted in free foreign exchange. Interest earned on these accounts can be remitted only in Indian Rupees to NRIs/PIOs in Nepal & Bhutan. Q10. Can fixed deposits be closed prematurely? A10. NRE & FCNR fixed deposits with the bank can be closed prematurely. No interest is payable if the deposit is not kept with the bank for a minimum period of one year. If the deposit is kept for over one year, interest will be paid at the rate applicable for the period for which it has run less a penalty of 1%. Q11. Will the penalty be waived if the deposit is closed for redeployment in another scheme of the Bank? A11. Yes. No penalty is levied if the deposit is closed prematurely for redeployment in another scheme of our Bank. Q12. Can an FCNR deposit in one currency be converted to a deposit in another currency? A12. Yes. However, it would be advisable to do so on
