Statutory Meaning & Definition
Foreign Currency Non-Resident (Bank) Account — a fixed deposit account for NRIs maintained in foreign currency (USD, GBP, EUR, etc.) with Indian banks. Both principal and interest are freely repatriable and tax-free in India.
Frequently Asked Questions (FAQs)
What is FCNR Account in Indian corporate law?
Foreign Currency Non-Resident (Bank) Account — a fixed deposit account for NRIs maintained in foreign currency (USD, GBP, EUR, etc.) with Indian banks. Both principal and interest are freely repatriable and tax-free in India.
Why is FCNR Account important for compliance?
FCNR Account is governed by the Foreign Exchange Management Act, 1999 and regulated by RBI. Understanding this concept is essential for ensuring regulatory compliance, avoiding penalties, and making informed corporate decisions in India.
Who should know about FCNR Account?
FCNR Account is relevant for company secretaries, compliance officers, chartered accountants, corporate lawyers, board members, and all professionals dealing with FEMA regulatory matters in India.
Contextual Analysis & Regulatory Circulars
Recent analysis and regulatory updates related to FEMA:
RBI FEMA Second Amendment Regulations 2026: EDF Deemed Submitted for Service Exporters from 1 October 2026
Published: 3 November 2026
RBI Forex Derivative Curbs: USD 5 Million Limit, 20% FERR and Rebooking Ban (October 2026)
Published: 10 October 2026
RBI Amends FEMA 23(R) Export-Import Regulations: Shorter Timelines and New Authorised Dealer Powers
Published: 25 September 2026
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