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 has actually remained with the bank. Q.20 If an FCNR deposit of 12 months maturity is withdrawn prematurely, would any interest be payable. While the premature withdrawal would be allowed, no interest would be payable. Q.21 Are the interest rates on FCNR deposits liable for periodic revision? The rates are based on the rates prevailing in international markets for the currencies concerned for deposits of comparable maturities and are, therefore, liable for change. But deposits will continue to earn the contracted rates till maturity. Interest rate on FCNR deposits are fixed by the bank from time to time which are very competitive. Q.22 What about debits to FCNR accounts for local payments? Debits for local payments are allowed freely. Q.23 Are funds in FCNR accounts freely repatriable abroad. Yes. Q.24 Are any tax concessions available to NRIs? Income from interest on mon
