How to open a PNB FCNR account

Punjab National Bank, or PNB Bank for short, offers FCNR accounts to Non-Resident Indians (NRIs) to earn interest on foreign currency holdings in India. Read on to learn more about opening an FCNR deposit account at PNB Bank, expected interest rates, and the benefits of holding an account.

What is FCNR at PNB Bank?

FCNR stands for Foreign Currency Non-Resident Account. An FCNR account is a term deposit account that earns interest until maturity. FCNR accounts are unique because they are held in a foreign currency in India but earn interest at attractive rates. FCNR accounts are not available to resident Indians.

PNB Bank is one of many Indian banks that offer FCNR accounts. You can hold an FCNR account in one of six currencies at the bank for up to five years. FCNR accounts in India tend to earn more in interest than the same currency accounts can earn overseas.¹

How to open an FCNR account in PNB Bank?

NRIs with a banking relationship with PNB Bank can open FCNR deposits online using the bank’s Internet banking platform. If in India, existing customers can also visit PNB Bank branches in India to open an FCNR deposit account.

NRIs without an account at PNB Bank can open a new FCNR account with the bank- so an existing relationship is not required. However, they will need to complete the Know Your Customer (KYC) process and register before an FCNR account can be opened.

Opening PNB Bank FCNR Deposit Account Online

Here is how to open an FCNR account online if you are already a customer of PNB Bank:²

1. Log in to the PNB Bank internet banking.
2. Select a request for a new FCNR deposit.
3. Follow the steps on the screen to complete the request. You may be asked to complete the FCNR deposit account opening form.
4. Send the funds to PNB Bank to complete the opening process.

NRIs without an account with PNB Bank should also complete the account opening form and submit attested copies of the documents (see the section below on what documents you may need). Once you get your customer identification number, you can apply for Internet banking and open an FCNR deposit account like existing PNB bank customers.

Opening PNB Bank FCNR Deposit Account in person

If you are visiting India as an NRI, you can open a new FCNR account at an authorized PNB bank branches:³

You can meet with the NRI services of the PNB Bank branch, who will help you with the application form. Just make sure to have your documents and a method to fund the account. Check out the section below on transferring money for a new FCNR account.

PNB Bank FCNR rates

FCNR rates depend on the currency you choose for the account and how long you intend to hold it.

Here are the interest rates for FCNR accounts at PNB Bank:⁴

Term deposit of 1 year to less than 2 years

Term deposit of 2 years to less than 3 years

Term deposit of 3 years to less than 4 years

Term deposit of 4 years to less than 5 years

Term deposit of 5 years

Rates updated as of April 20, 2023.

To note:

• Rates may vary.
• Rates differ for accounts above $1 million US dollars
• Accounts can be renewed at the prevailing rates at the time of maturity.

Premature withdrawal penalty

If you withdraw or cancel your FCNR account with PNB Bank within one year, all interest is forfeited. But, if you hold the account for over a year but withdraw before the maturity date, there is a 1% penalty fee.

How to transfer funds to a PNB Bank FCNR account?

An FCNR account can only start earning interest once it has been funded. In most cases, the money to fund an account must come from abroad. You can transfer money to India for an FCNR account in a few ways:

• Online money transfer - NRIs can use third-party money transfer services to send foreign currency to India to fund their FCNR or NRI accounts. These money transfers can be cheaper than bank wire transfers and often faster. But shop around, as there can be transfer fees and mark-ups on the exchange rate.
• International wire transfer - NRIs can send foreign currency through their resident bank to PNB Bank with a wire transfer. Wire transfers are through the SWIFT network of banks and come with a transfer fee. The banks also set the exchange rate, so you could end up paying more than you expected for a transfer.
• Foreign currency note deposits - NRIs visiting India can deposit foreign currency notes or foreign traveler’s checks with a local PNB Bank branch.
• Transfer from existing NRE or FCNR accounts - You can transfer money from an existing FCNR account or an NRE account in India. Even if it is at another bank, you can make a domestic transfer to PNB Bank. PNB Bank will convert the rupees to the account’s foreign currency at its own exchange rate.

Check our Wise for a fast and simple way to send money from abroad to an FCNR account in India. Wise provides low-cost transfers around the world and always uses the mid-market exchange rate. That’s the same rate the banks use. So you can save money when funding an NRI or a new FCNR account. With an easy-to-use app and convenient website, money can arrive in India on popular transfer routes in seconds.

And if you are an NRI or OCI who travels, take a look at the Wise multi-currency account. It is a single account in the Wise app that lets you hold multiple currencies- including US dollars, Indian rupees, British pounds or Euros. Whether you are vacationing in the US, working in Europe or visiting family in India, the Wise multi-currency account can work for you.

Sign up for a free Wise account today and see how much you can save when moving money worldwide.

• Please see Terms of Use for your region or visit Wise Fees & Pricing for the most up-to-date pricing and fee information.
• The speed of transaction claim depends on funds availability, approval by Wise’s proprietary verification system and systems availability of our partners’ banking system, and may not be available for all transactions

Features and benefits of PNB Bank FCNR account

An FCNR account can help account holders avoid volatility in the Indian rupee exchange rate while earning interest on a deposit. Here are additional features and benefits of holding an FCNR account, especially at PNB Bank:⁵

• The principal and interest can be transferred back to your resident country at maturity.
• FCNR deposit interest is not subject to income or wealth tax in India.
• You can use the PNB Bank account as collateral for a loan in India or an overdraft for an NRI account.
• An FCNR account can be used as collateral for a loan abroad through one of PNB’s correspondent banks.
• You can open the account with another NRI.

If you hold an equivalent of $5,000 US dollars or more in an FCNR account, you can benefit from additional advantages:

• 50% discount on bank service charges as long as the deposit is held.
• Free lockers if you have a minimum of $10,000 US dollars at the bank.
• Free multi city cheque book for qualifying NRI accounts.
• No interbank transaction charges within India.

Who can open an FCNR account at PNB Bank?

Anyone who qualifies as an NRI can open FCNR accounts in PNB Bank. NRIs can open an account as a single account holder or jointly with other NRIs.

An NRI is an Indian who lives outside India for more than 182 days a year. It includes students studying abroad, Indians employed outside India and government employees with diplomat passports.⁶

You are also eligible for an FCNR account at PNB Bank if you hold a foreign passport and an Overseas Citizen of India (OCI) card.

Resident Indians are not eligible to open an FCNR account as a single account holder. Instead, resident Indians can open a Resident Foreign Currency Account(RFCA).⁷

Documents required to open an FCNR account in PNB Bank

The documents you need to open a PNB Bank FCNR account depend on your relationship with the bank. Existing NRI customers of PNB Bank may only be asked to show confirmation of their current NRI status.

You will be asked to submit KYC documents for verification if you don’t have an account at PNB Bank. The KYC documents include the following:

• A copy of a passport
• A copy of your work or residency visa.
• A copy of an OCI card, if applicable.
• Proof of overseas address like overseas bank account statements or credit card bills.
• Two latest color passport-size photographs.

You may be required to self-attest- or sign- all the pages of the documents you provide. Check with PNB bank for details.⁸

Currencies available in PNB Bank FCNR account

PNB Bank offers FCNR deposits in six designated foreign currencies:

• US Dollars
• British Pounds
• Euros
• Japanese Yen
• Canadian Dollars
• Australian Dollars