Bank of Baroda hikes FCNR interest rates by up to 135 bps: Check latest rates

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Bank of Baroda has raised interest rates on Foreign Currency Non Resident Deposits – FCNR (B) by up to 135 basis points across multiple currencies and maturity periods, effective October 16, 2022. The rates are valid until November 15, 2022, stated a Bank of Baroda press release.
Latest FCNR interest rates

The above revised rates will be applicable for fresh and existing FCNR (B) deposits which are renewed on maturity. Note that no additional interest is permitted to Senior Citizen and Staff.

The entire maturity proceeds, including principal and interest, may be entirely remitted in foreign currency (USD, GBP, EURO, or AUD) at par to any location of your choosing under this deposit plan. Money can be moved from one NRI’s FCNR account to another NRI’s FCNR, non-resident (external) rupee savings, or fixed deposit accounts, according to the website.

Interest

According to Bank of Baroda website, “Interest earned/accrued on NRE & FCNR Term Deposits is tax free in India under the relevant provisions of Income Tax Act in India and hence no tax at source is deductible in respect of these deposits. “In case of NRO deposits” The depositor can claim the benefit of reduced rates of tax under Double Tax Avoidance Agreement (DTAA), which India has with the governments of various countries, by submitting the documents prescribed by the Bank at the beginning of every financial year.”

FCNR loans

FCNR loans are available for USD, Euro, Japanese and Sterling. The tenor is available for a period from 3 months to 36 months subject to periodical rollover. This facility would be available to all our existing corporate/non-corporate clients.

When FCNR loan can be allowed?

Loan can be availed for following reasons

  • Working capital.
  • Loan for capital expenditure such as purchase of new plant and machinery, acquisition of equipment and other assets.
  • Repayment of existing high cost loans.

Features

Below are the features of FCNR account, according to the Bank of Baroda website.

  • Entire funds (principal + interest) held in FCNR accounts can be repatriated.
  • Option to keep the deposit receipt free of cost in bank’s safe custody.
  • Intimation of due dates enable you to plan your finance portfolio.
  • Automatic renewal on due date for 1 year at the prevailing rate of interest in the absence of fresh instructions to ensure that your money grows timely.
  • Acceptance & execution of standing instructions.
  • Addition and deletion of name of account holders is permitted.
  • Joint account with one or more NRIs is permissible.
  • Waiver of the penalty on premature withdrawal to renew of FCNR (B) Deposits for better rate of interest provided if the customer is ready to renew the deposits for a period more than the residual maturity and the same deposit has run at least for a period of one year at our Bank. However, in case of FCNR (B) deposit the renewal period should be more than residual period with a minimum of one year.
  • KYC documents to be submitted every two years. If not submitted, the deposit on completion of three years from the date of maturity will be crystallised (converted to INR on the date of completion of three years in absence of any specific instruction from the customer).

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