Can NRIs open joint FCNR (B) accounts with resident Indian relatives? Know what the latest rules say

If you are a Non-Resident Indian (NRI) looking to park your foreign currency savings in India, an FCNR (B) deposit may be an option to consider. But many Non-Resident Indians (NRIs) may be in a situation where they may want to open an FCNR (B) account with a close relative staying in India. This can be useful when an NRI wants to keep the deposit in foreign currency while also having a close family member associated with the account for easier handling in India. But are NRIs allowed to open such a joint account?

Can an NRI open a joint FCNR (B) account with a close relative?

As per the State Bank of India (SBI) website, NRIs can also open an FCNR (B) account along with a resident Indian relative with some conditions.


So, before opening the deposit, it is important to understand who can be added as a joint holder in an FCNR (B) account and which mode of operation is allowed.

NRIs can also hold their FCNR deposit jointly with a resident relative on a ‘Former or Survivor’ basis only.

According to the IDFC FIRST Bank, “NRIs can open joint accounts with other NRIs or a resident. In case, a resident must be made a joint account holder, the mode of operation has to be ‘former or survivor’ and only one resident can be added as a joint account holder. Joint accounts can also be opened with other NRIs (maximum 4 are permitted) with the mode of operation as ‘either or survivor’, jointly, or minor under guardian.”

As per the SBI website, not just FCNR (B), but Non-resident Ordinary (NRO) and Non-resident External (NRE) accounts can also be opened jointly with resident Indians.


Also read: FCNR (B) FDs offering up to 7.50% interest rate to NRIs, OCIs: These banks offer 6.25% or higher on deposits

Account can be opened jointly with other NRIs and Persons of Indian origin (/ PIOs) or with resident Indians as per following :

Type of Account	Joint Account with Resident Indians	Joint Account with NRIs or PIOs
NRO	Yes	Yes
NRE	Yes	Yes
FCNR (B)	Yes	Yes

As per the SBI website, NRIs and OCIs customers are permitted to open and maintain their NRE/NRO/FCNR (B) accounts with their resident relative(s) (as mentioned below) as a joint holder on ‘ormer or survivor” basis (NRI/PIO/OCI being the former).

Who is considered as an NRI’s resident relative(s)?

The individuals are considered resident relatives for an NRI, as per the SBI website.

(i) They are members of a Hindu Undivided Family;

(ii) They are husband and wife; or

(iii) one person is related to the other in such manner as can be prescribed;

1) Father (Provided that the term “Father” includes step-father)

2) Mother (Provided that the term “Mother” includes step-mother)

3) Son (Provided that the term “Son” includes step-son)

4) Son’s wife

5) Daughter

6) Daughter’s husband

7) Brother (Provided that the term “Brother” includes step-brother)

8) Sister (Provided that the term “Sister” includes step-sister)

How can NRIs fund FCNR (B) accounts?

NRIs can fund FCNR deposit in two ways; Foreign Currency Remittances from overseas

and funds from any other FCNR or an NRE account in any bank in India.

As per current guidelines, the principal amount as well as interest earned on FCNR deposit is exempted from income tax in India. The funds held in your FCNR deposit are fully and freely repatriable (both principal and Interest).