How to open a Kotak Bank FCNR account

A Kotak Bank FCNR account is a way for Non-Resident Indians to grow their foreign currency earnings in India. Learn more about opening a Kotak Bank FCNR account, who is eligible, and the interest rates you can expect.

Table of Contents
What is FCNR at Kotak Bank? How to open an FCNR account in Kotak Bank? Kotak Bank FCNR rates How to transfer funds to a Kotak Bank FCNR account? Features and benefits of Kotak Bank FCNR account

What is FCNR at Kotak Bank?

A Foreign Currency Non-Resident account, or FCNR, is a term deposit account that lets NRIs grow interest on earnings from abroad. Account holders deposit their earnings in a selected foreign currency which grows with interest over time. The unique feature of an FCNR account is that it protects account holders against Indian Rupee exchange rate fluctuations while still earning interest.

A Kotak Bank FCNR account is available in six major foreign currencies. The term length depends on your chosen currency; for instance, only US dollar accounts can be held for up to five years. Consider a different bank if you are looking for longer-term accounts in a currency other than US dollars.¹

How to open an FCNR account in Kotak Bank?

NRIs and OCIs can open an FCNR deposit account with Kotak Bank. Although having an existing NRI account with Kotak Bank is not required to open an FCNR account, having one makes the opening process easier. Indian residents are not eligible for an FCNR account.

Existing NRI account holders and new customers can follow the same process to open an account online. There is an online form where you can input your customer reference number if you already hold Kotak Bank accounts or simply put in your contact information. Kotak Bank representatives will reach out to get the process started.

Here are the steps to follow for opening a Kotak Bank FCNR account:²

Opening a Kotak Bank FCNR deposit account online

1. Head to the Kotak Bank FCNR online form.
2. Select whether you are an existing Kotak Bank customer.
3. Existing customers must enter their CRN (Customer Reference Number).
4. Enter your details like name, mobile number (with country code), email ID, and contact number.
5. Select the Deposit Currency from the drop-down options.
6. Select the deposit tenure from the options provided.
7. Enter the FCNR deposit amount. Please note the minimum deposit amount for each currency.
8. Accept the terms and conditions and click on the Apply Now option.

Kotak Bank officials will contact you to complete the account opening. Check out the section below on how to send money to India to fund an FCNR account.

Opening a Kotak Bank FCNR deposit account In person

If you are visiting India, you can also apply for a Kotak bank account at a bank branch. Here is what to expect:

1. Gather your documents.
2. Head to a Kotak Bank branch near you or book an appointment online.
3. Speak to a Relationship Manager.
4. After verifying the documents, the relationship manager will help you complete the process.

Kotak Bank FCNR rates

FCNR interest rates are based on the currency you open with and your selected deposit tenure. Remember that you may not always get a better interest rate the longer you hold the account. But the advantage for NRIs is that FCNR interest rates are often better than what you can get overseas.

Here are the Kotak Bank FCNR deposit interest rates.³

Term deposit 1-year to less than 2 years

USD	GBP	EUR	AUD	SGD
5.10%	4.75%	3.50%	3.90%	3.65%

Term deposit of 2 years

USD	GBP	EUR	AUD	SGD
5.25%	4.90%	3.65%	4.05%	3.75%

Term deposit of over 2 years to less than 3 years

USD	GBP	EUR	AUD	SGD
4.25%	4.20%	3.10%	3.60%	3.00%

Term deposit of 3 years to less than 4 years

USD	GBP	EUR	AUD
3.50%	3.60%	2.55%	3.10%

Term deposit of 4 years to less than 5 years

USD: 3.10%

Term deposit of 5 years

USD: 3.10%

Rates updated as of April 17, 2023.

To note:

• The interest rates for FCNR deposits of more than USD 500,000 may differ.
• Kotak Bank FCNR deposit rates are subject to change.
• Acceptance of FCNR deposits over USD 1 million or more is at the discretion of Kotak Bank.
• Kotak Bank doesn’t pay interest on FCNR deposits held for less than one year.

Premature Withdrawal Penalty

While the Kotak Bank FCNR account is liquid, which means you can take your money out before maturity, the bank does charge a premature withdrawal penalty.

USD	GBP	EUR	JPY	AUD	SGD
0.25%	0.25%	0.00%	0.00%	0.25%	0.10%

The penalty is for deposits that are withdrawn after 12 months of opening.

How to transfer funds to a Kotak Bank FCNR account?

Kotak Bank facilitates funds transfer to your FCNR deposit account in five ways.⁴

• Click2Remit: NRIs can use the Click2Remit service to transfer funds from their overseas bank accounts to their Kotak Bank FCNR account. You need to have an existing Kotak Bank relationship to use this.
• Online Funds Transfer - Money transfer services are available for sending money to local accounts in India from your phone or computer. While these services are often quicker and cheaper than bank wire transfers, review transfer fees and exchange rates and shop around to find the lowest cost transfer.
• Wire Transfer - NRIs can fund FCNR accounts through wire transfers from overseas bank accounts. Most banks worldwide are part of the SWIFT global network to make transfers between countries. Wire transfers can take longer than other options and may come with high fees.
• Exchange House - NRIs in GCC countries, Singapore, and Hong Kong can use an exchange house to send money to India for an FCNR account. Some exchange houses can fund an account on the same day.
• Foreign Currency Cheque - NRIs in India can deposit a foreign currency cheque or demand draft in their names at any of Kotak Bank’s branches. The bank will then clear the cheque with the overseas bank and fund the FCNR deposit account. But, this facility can take time.
• Transfer from FCNR/NRE accounts in India - NRIs can transfer foreign currency deposits from their existing FCNR deposits with other banks in India. Similarly, they can transfer money to their new Kotak Bank account in Indian rupee from an existing NRE account. The money is then converted to the FCNR foreign currency at a Kotak bank exchange rate.

Open an FCNR account the easy way by sending money to India with Wise. Wise is the low-cost and fast way to safely transfer money online. Using smart tech, Wise has only one upfront transfer fee and uses the mid-market exchange rate- the same one you see on Google) on every transfer. So you could save money the next time you open an NRI account in India.

If you are an NRI or OCI living abroad, take a look at the Wise multi-currency account. It is one account that lets you hold, send, spend, and receive in multiple currencies right on your phone. So if you are funding an NRI account, going on holiday or traveling for work, you can have all your currencies in one place.

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Features and benefits of Kotak Bank FCNR account

The primary benefit of Kotak Bank FCNR deposit is that the money can be kept in a foreign currency rather than be converted into Indian rupees while earning interest. Here are some additional features and benefits of holding an FCNR account with Kotak Bank:

• You can repatriate - or send back- the entire principal and interest to your residence country at maturity.
• The principal and interest amounts are not subject to income tax in India.
• You can withdraw the funds anytime, although there may be a penalty.
• You can open the account jointly with another NRI or OCI holder. Joint accounts with Indian residents are not allowed.
• Net Banking and Phone Banking facilities are available with Kotak Bank FCNR deposits.
• An automatic renewal facility is allowed in Kotak Bank FCNR deposits. Typically, the deposit renews for the same tenure but at the interest rates on the maturity date. However, account holders can provide instructions for a new renewal period before maturity.

Minimum deposit requirement

The minimum amount to open a Kotak Bank FCNR account varies from currency to currency.

FCNR Currency	Minimum Amount
US dollars	$1,000
British pounds	£500
Euros	€1,000
Australian dollars	$1,000
Singapore dollars	$1,000
Japanese yen	¥110,000

Who can open an FCNR account at Kotak Bank?

NRIs and OCIs can open FCNR deposit accounts in Kotak Bank. You can have an existing banking relationship with the bank to open one, or you can also open an FCNR account if you are new to the bank.

Any Indian living abroad for more than 182 days in a calendar year qualifies as an NRI. It includes those on official postings abroad, seafarers, and students.⁵

Documents required to open an FCNR account in Kotak Bank

The documents you need to open an FCNR account at Kotak Bank depend on your relationship with the bank. Existing NRI account holders don’t need to submit new KYC documents. However, they may be asked to show confirmation of their NRI or OCI status.

Customers without a relationship with Kotak Bank must register by completing the Kotak Bank application page details and getting a Customer Registration Number (CRN). A Kotak Bank representative will contact you to guide you through the process.

Here are a few documents you may need to open a new NRI or FCNR account:

• Copy of a valid Indian passport.
• Copy of a work visa, residence permit, or student visa.
• Copy of an OCI card, if applicable
• Proof of address overseas or in India
• Passport-size photograph.

The documents may be required to be self-attested. If you decide to open a new account in person at a Kotak Bank branch, you must bring these documents with you.

Currencies available in Kotak Bank FCNR account

Kotak Bank offers FCNR deposits in the following six denominated foreign currencies.⁶

• US Dollar
• British Pounds
• Euros
• Japanese Yen
• Australian Dollar
• Singapore Dollar

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Sources used for this article:

1. Kotak Bank FCNR Deposit Account
2. Opening a Kotak Bank FCNR Deposit Account
3. Kotak Bank FCNR Interest Rates
4. Fund Transfer to Kotak Bank FCNR deposit account
5. Definition of NRI
6. Permitted currencies for opening Kotak Bank FCNR accounts

Cover photo by Kaitlyn Baker on Unsplash.