Types of Deposit Schemes

Particulars

FCNR a/c
[Foreign Currency
(Non-Resident) a/c]

NRE a/c
[Non-Resident
(External) Rupee a/c]

NRO
(Non-Resident
Ordinary Rupee a/c)

1.

2.

3.

4.

Who can open an account

NRIs and OCBs

NRIs and OCBS

Any person resident outside India

Joint account of two or more NRIs

Permitted

Permitted

Permitted

Joint account with another person resident in India

Not permitted

Not permitted

permitted

Currency in which account denominated

Pound Sterling US Dollar, Jap. Yen, or Euro

Indian Rupees

Indian Rupees

Repatriability:
Principal

Interest

Freely repatriable

Freely repatriable

Freely repatriable

Freely repatriable

Not repatriable

Freely repatriable

Foreign Currency Risk

Account holder is protected against changes in INR value vis-à-vis the currency in which the account is denominated

Account holder is exposed to the fluctuations in the value of INR

Account holder is exposed to the fluctuations, in the value of INR to the extent of interest amount

Type of accounts

Term deposits only

Current
Savings
Recurring
Fixed Deposits

Current
Savings
Recurring
Fixed Deposits

Period for fixed deposits

For terms not less than 1 year and not exceeding 3 years

For the periods as announced by the deposit taking bank

For the periods as announced by the deposit taking bank

Rate of interest

Banks are free to determine interest rates within the ceiling, if any, prescribed by the Reserve Bank

Banks are free to determine interest rates.

Banks are free to determine interest rates.