In the case of FCNR Accounts the payment of Interest is effected in.....

BANKING GENERAL KNOWLEDGE

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Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]

In the case of FCNR Accounts the payment of Interest is effected in____

A	Indian Rupee
B	Only in pound
C	Same currency in which deposit stands.
D	Yen

Explanation:

Detailed explanation-1: -IMPORTANT UPDATE: Effective 1st JULY 2021 FCNR deposit for GBP, EURO & JPY currencies will be offered only for 1 Year tenure. Existing FCNR deposits booked under GBP, EURO & JPY currencies for the tenor 1 year 1 day to 5 year and which are due for auto renewal will be auto renewed for 1 year tenor by default.

Detailed explanation-2: -Foreign Currency Non-Resident (Banks) Deposit Interest Compounded Half Yearly. In FCNR deposit interest is computed based on 360 days to a year. Compounding is applicable to deposit of more than one year.

Detailed explanation-3: -The FCNR account is meant for those who wish to hold the deposit in a foreign currency of their choice. Presently FCNR(B) deposits can be placed in 6 currencies viz US dollar (USD), Pound sterling (GBP), Japanese Yen (JPY), Euro (EURO), Australian Dollar(AUD) & Canadian Dollar (CAD).

Detailed explanation-4: -The Reserve Bank of India (RBI) has opted to temporarily authorise banks to raise new FCNR(B) and NRE deposits without regard to the existing guidelines on interest rates, effective July 7, 2022.

There is 1 question to complete.