ECONOMICS
FOREIGN CURRENCY MARKETS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Non-resident Indian
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Person of Indian origin
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Overseas Corporate Bodies
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Both a and b
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Detailed explanation-1: -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-2: -Answer: An NRO (current/ savings) account can be opened by a foreign national of non-Indian origin visiting India, with funds remitted from outside India through banking channel or by sale of foreign exchange brought by him to India.
Detailed explanation-3: -Unlike NRE and NRO, the FCNR Accounts are not rupee-dominated. They are opened by transferring a freely convertible foreign currency, such as USD, Pound, Euro, Australian Dollars, etc. Only an NRI can be a joint holder for the FCNR Accounts.
Detailed explanation-4: -The account can be opened by Non-Resident Indians (NRI) and Overseas Corporate Bodies (OCB). The account should be opened by the Non-Resident account holder himself and not by the holder of Power of Attorney in India. These accounts are Term Deposit accounts with minimum maturity of one year.