The significance of Non-Resident Deposits lies in the fact that these deposits are ‘confirmed’ and ‘reliable’ source of foreign exchange as they are unconditional in nature. In fact one of the major components of Non-Resident Deposits is in the form of FCNR Deposit Accounts (Foreign Currency Non-Resident Account) which is immune to currency fluctuations.
Foreign Currency Non Resident Deposit Meaning: A Foreign Currency Non-Resident (FCNR) Deposit is unique to India and is primarily meant for non-resident Indians (NRIs) and persons of Indian origin (PIOs), who want to hold monetary deposits in their chosen foreign currency. Currency options available are usually the USD, GBP, EUR, JPY, AUD and CAD. A major advantage of holding an FCNR deposit is that the depositor need not worry about exchange rate fluctuations and can choose a term between 1 to 5 years. These deposits play a important role in courtiers financial wealth creation. The Researchers have studied this important topic with respect to its concept and meaning to create awareness amongst NRI’s and readers will be benefited by this by creating interest in increasing these deposits.