What is the maximum period of maturity for a FCNR term deposit account?
• The maximum period of maturity is three years. • Is premature withdrawal of the FCNR term deposit allowed? • Yes. However, this is subject to the levy of a penalty. • What is the penalty for premature withdrawal of a FCNR deposit? • Interest in such cases is paid at one per cent below the interest rate payable for the period for which the deposit is, however, payable only if they are kept for a minimum period of six months. • If a FCNR deposit of 6 months maturity is withdrawn prematurely , would any interest be payable? • No. While the premature withdrawal would be allowed, no interest would be payable. For such premature withdrawals the bank may levy penalty as per their discretion. • Are the interest rates on FCNR deposits liable for periodical revision? • Yes. The Banks have been permitted to offer interest on such deposits at rates not more than the LIBOR prevailing on the last working day of the previous week for the relevant maturity and currency. Subject to this guideline, ba
