Multiple choice

An NRI has FCNR and NRE accounts with your branch and he has now returned to India for permanent stay. What will the bank do with these two accounts?

  1. Both the accounts have to be closed and amount should be credited in a domestic rupee account.

  2. After closure of the accounts, the balance should be transferred to NRO account to be opened for that purpose.

  3. Account holder can keep the funds in foreign currency in the form of Resident Foreign Currency Account.

  4. The amount has to be transferred to a current of saving bank account.
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

When NRIs return with the intention to reside for uncertain period, their accounts will be designated as Resident Accounts. The funds in their NRE and FCNR accounts may be also converted into foreign currency and placed in Resident Foreign Currency (RFC) Accounts.

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