Foreign Currency Accounts in India| North Loop Official Blog
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31 Mar 2020

Foreign Currency Accounts in India

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Foreign Currency Accounts in India

If you’re an Indian who is looking for a foreign currency account, use this article to answer any questions you may have. Foreign currency accounts are used by Indians to deposit overseas earnings, or those who are looking to protect their earnings from exchange rate fluctuations domestically.

There are a few different types of foreign currency accounts, depending on if you are an Indian resident or non-resident Indian (NRI). Businesses can also open exchange-earner accounts to minimize certain foregin exchange fees.

How does a foreign currency account work?

While your Indian savings account holds a balance in Indian rupees, a foreign currency account can hold a balance in multiple foreign currencies in India itself (you will have to check with the bank which currencies are available).
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Resident foreign currency (domestic) account

A Resident foreign currency domestic account can be opened by residents of India (including foreigners), and is a non-interest bearing account.

Here are the different situations you can use foreign currency from to open a resident foreign currency (domestic) account:
  • Foreign currency you’ve received as payment while you were abroad, or from a non-resident who is visiting India
  • Foreign currency received as a gift from abroad or while you were a visiting non-resident
  • Any extra foreign currencies that you may have purchased while traveling abroad
  • Gifts from a relative
  • Earnings through the export of goods/services
  • Foreign currency you’ve received from life insurance claims.

If you’ve received or will receive foreign currency from the above scenarios, you are eligible for a resident foreign currency account.

Foreign currency non-resident account

A foreign currency non-resident account (FCNR Accounts) is for non-resident Indians (NRIs). It cannot be a savings or current account, but only a term deposit account with a minimum of 1 year and maximum of 5 years.

You can add funds to the account through a remittance from abroad. Any income you’ve earned outside of India, such as rent or pension income, can be deposited into this account.

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This publication is provided for general information purposes only and is not intended to cover every aspect of the topics with which it deals. It is not intended be advice. You must obtain professional advice before taking, or refraining from, any action on the basis of the content in this publication. The information in this publication does not constitute legal, tax, investment or other professional advice from North Loop or its affiliates. We make no representations, warranties or guarantees, whether express or implied, that the content in the publication is accurate, complete or up to date. All opinions expressed do not reflect the views of North Loop nor are endorsed by North Loop.