If FCNR (B) deposits are withdrawn prematurely within the deposit period of 1 year, no interest is payable. Premature withdrawals after 1 year (if deposits placed for longer periods) will be subject to penal interest of 1% below the rate applicable for the period the deposit has remained with the bank.
Loans / Overdrafts
Loans & overdrafts can be availed against the security of NRE deposits for business purposes or personal use. Such loans should not be used for the purpose of investment in India or for re-lending or for investment in farm houses / Real Estate.
NRI depositors are requested to renew their deposits within 14 days of maturity to get the benefit of backdated renewal.
Operations in the Account
Power of Attorney can be given to Residents to renew the accounts on maturity.
Power of Attorney holder cannot
- 1.Open an account
- 2.Remit funds abroad except only to the non resident account. Remittance in favour of account holder is permitted provided specific power have been given in the Power of Attorney.
- Borrow against the deposit
- Close the account.