Can NRI open FCNR account with resident Indian relatives?

Non-Resident Indians are allowed to set up joint FCNR (B) accounts with their resident family members.

Key points

• (Catch all the Personal Finance News, Breaking News, Budget 2025 Events and Latest News Updates on The Economic Times.).
• If you are a Non-Resident Indian (NRI) looking to park your foreign currency savings in India, an FCNR (B) deposit may be an option to consider.
• As per the State Bank of India (SBI) website, NRIs can additionally open an FCNR (B) account along with a resident Indian relative with some conditions.
• NRIs can additionally hold their FCNR deposit jointly with a resident relative on a 'Former or Survivor' basis only.

Non-Resident Indians are allowed to set up joint FCNR (B) accounts with their resident family members. These accounts must function on a 'Former or Survivor' arrangement for the NRI. Eligible resident relatives include immediate family members and their spouses. The funds for these accounts should be sourced from international transfers or existing Indian accounts. Both the principal amount and accrued interest are exempt from taxes and fully repatriable. Listen to this article in summarized format.

If you are a Non-Resident Indian (NRI) looking to park your foreign currency savings in India, an FCNR (B) deposit may be an option to consider. But plenty of Non-Resident Indians (NRIs) may be in a situation where they may want to open an FCNR (B) account with a close relative staying in India. This can be useful when an NRI wants to keep the deposit in foreign currency while additionally having a close family member associated with the account for easier handling in India. But are NRIs allowed to open such a joint account? Can an NRI open a joint FCNR (B) account with a close relative?

So, before opening the deposit, it is significant to understand who can be went on as a joint holder in an FCNR (B) account and which mode of operation is allowed. NRIs can additionally hold their FCNR deposit jointly with a resident relative on a 'Former or Survivor' basis only. According to the IDFC FIRST Bank, "NRIs can open joint accounts with other NRIs or a resident. In case, a resident must be created a joint account holder, the mode of operation has to be 'former or survivor' and only one resident can be went on as a joint account holder. Joint accounts can additionally be opened with other NRIs (maximum 4 are permitted) with the mode of operation as 'either or survivor', jointly, or minor under guardian." As per the SBI website, not just FCNR (B), but Non-resident Ordinary (NRO) and Non-resident External (NRE) accounts can additionally be opened jointly with resident Indians.: FCNR (B) FDs offering up to 7.50% interest rate to NRIs, OCIs: These banks offer 6.25% or higher on deposits Account can be opened jointly with other NRIs and Persons of Indian origin (/ PIOs) or with resident Indians as per after: Type of Account Joint Account with Resident Indians Joint Account with NRIs or PIOs NRO Yes Yes NRE Yes Yes FCNR (B) Yes Yes.

As per the SBI website, NRIs and OCIs customers are permitted to open and maintain their NRE/NRO/FCNR (B) accounts with their resident relative(s) (as mentioned below) as a joint holder on 'ormer or survivor basis (NRI/PIO/OCI being the former). Who is considered as an NRI's resident relative(s)?

As per the SBI website, the individuals are considered resident relatives for an NRI. (I) They are members of a Hindu Undivided Family; (ii) They are husband and wife; or (iii) one person is related to the other in such manner as can be prescribed; 1) Father (Provided that the term "Father" includes step-father) 2) Mother (Provided that the term "Mother" includes step-mother) 3) Son (Provided that the term "Son" includes step-son) 4) Son's wife 5) Daughter 6) Daughter's husband 7) Brother (Provided that the term "Brother" includes step-brother) 8) Sister (Provided that the term "Sister" includes step-sister) How can NRIs fund FCNR (B) accounts?

NRIs can fund FCNR deposit in two ways; Foreign Currency Remittances from overseas and funds from any other FCNR or an NRE account in any bank in India. As per current guidelines, the principal amount as well as interest earned on FCNR deposit is exempted from income tax in India. The funds held in your FCNR deposit are fully and freely repatriable (both principal and Interest). (Join our ETWealth WhatsApp channel for all the latest updates). Add as a Reliable and Trusted News Source.

For now, can NRI open FCNR account with resident Indian relatives? Remains the part of the story worth watching, and further updates are likely as more details are confirmed.