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What is the status of FCNR (B) accounts on the return of the account holder to India?

April 26, 2017account accounts FCNR India Return Status

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What is the status of FCNR (B) accounts on the return of the account holder to India?

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A- Banks would treat the deposits held in FCNR accounts as resident deposits but continue to pay interest at the contracted rate till maturity of the deposit. Premature withdrawal of such deposits is subject to penalty. However, no penalty is is applicable in case of pre-mature conversion of balances held in FCNR (B) deposits into RFC accounts on their return to India.