Kotak Mahindra Bank FCNR (Foreign Currency Non-Resident) Account is a safe and easy way for NRIs to save their foreign income in India. This account allows you to deposit in different foreign currencies and offers good interest rates. It is repatriable, tax-free in India, and available for fixed tenures of 1 to 5 years. With easy online access and good customer support, the Kotak FCNR Account is a great option for NRIs looking to invest in India.
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What is a Kotak Mahindra Bank FCNR Account?
A Kotak Mahindra FCNR (Foreign Currency Non-Resident) Account is a fixed deposit account designed for Non-Resident Indians (NRIs) to park their earnings in foreign currency. The account allows you to hold deposits in major foreign currencies like USD, GBP, EUR, and JPY, protecting you from exchange rate fluctuations.
The Kotak Mahindra Bank FCNR Account offers attractive interest rates and tax benefits in India. Earned interest is also exempt from taxes in India. The deposit tenure ranges from 1 to 5 years, and the funds are repatriable, making it a secure and convenient investment option for NRIs.
Features of Kotak Mahindra Bank FCNR Account
The key features of Kotak Mahindra FCNR bank account are as follows:
- Attractive Interest Rates: Earn competitive returns on deposits in various foreign currencies, with rates up to 5.35% per annum.
- Multi-Currency Deposit: Supports deposits in six foreign currencies – USD, EUR, GBP, JPY, AUD, and SGD.
- Flexible Tenures: Deposit tenure ranges from 1 to 5 years for USD accounts and varies for other currencies.
- Exchange Rate Protection: Safeguards funds from exchange rate fluctuations.
- Interest Compounding: Interest is compounded every 180 days.
- Early Withdrawals: Allows early withdrawals with penalties; no interest is paid for withdrawals within the first year.
- Loan Facilities: FCNR deposits can be used as collateral for loans in Indian Rupees.
- Joint Account Option: Can be jointly opened by NRIs and PIOs.
Kotak Mahindra FCNR Account Interest Rates ~w.e.f. 01 January 2025 to 31 January 2025
| FCNR (B) Deposit | USD < 500000 | USD ≥ 500000 | GBP | EURO | AUD | SGD |
| ≥1 Year - <2 Year | 5.15% | 5.15% | 5.40% | 3.10% | 4.90% | 3.50% |
| 2 Year - <3 Year | 4.35% | 4.35% | 4.50% | 2.25% | 4.05% | 2.70% |
| 3 Year - <4 Year | 3.95% | 3.95% | 4.00% | 1.90% | 3.65% | – |
| 4 Year - <5 Year | 3.30% | 3.30% | – | – | – | – |
| 5 Year | 3.25% | 3.25% | – | – | – | – |
Steps to Open Kotak Mahindra FCNR Bank Account
Below are the simple steps to open Kotak Mahindra FCNR bank account in India:
- Check Eligibility and Documents Required: Ensure you qualify as an NRI/ PIO/ OCI to open an FCNR account. Also, prepare the necessary documents before applying to open the account.
- Choose the Currency: Select from the allowed foreign currencies (like USD, GBP, EUR, etc.).
- Visit a Branch or Apply Online: Visit the nearest Kotak Mahindra Bank branch or start the process online through their NRI banking portal.
- Fill Application Form: Complete the FCNR account opening form accurately.
- Submit Documents: Submit the required documents at the branch or upload them online.
- Fund the Account: Transfer funds in foreign currency through a wire transfer or cheque deposit.
- Account Confirmation: The bank verifies details and activates the account, notifying you via email/SMS.
Eligibility Criteria to Apply for Kotak Mahindra FCNR Account
The following category of individuals are eligible to open the Kotak Mahindra FCNR account:
NRIs (Non-Resident Indians)
- Indian citizens living abroad for work or business.
- Staying abroad for an uncertain period.
- Deputed abroad by the Government or PSUs.
PIOs (Persons of Indian Origin)
- Held an Indian passport anytime.
- Parent(s) or grandparent(s) were Indian citizens.
- Married an Indian citizen or PIO.
Others Under FEMA:
- Seafarers: Indians working with foreign shipping companies.
- Government Employees: Diplomats with official passports.
- Students: Indians studying abroad.
Documents Required to Apply for Kotak Mahindra Bank FCNR Account
You must fulfill the following documents and conditions before applying for a Kotak Mahindra FCNR Bank Account:
When Submitting Documents in India
- Photocopy of Passport (pages with personal details, issue/expiry dates, and address).
- Copy of valid Visa, Work, or Residence Permit.
- Proof of Mailing Address (local/overseas).
- Passport-sized color photo.
When Sending Documents from Overseas
- Photocopy of Passport (pages with personal details, issue/expiry dates, and address).
- Copy of valid Visa, Work, or Residence Permit.
- Proof of Mailing Address (local/overseas).
- Passport-sized color photo.
Attestation Options
- Overseas bank officials (designated countries).
- Indian Scheduled Commercial Bank overseas branch.
- Notary Public or equivalent authority.
- Indian diplomatic mission.
- Self-attestation:
- Sign documents with "TRUE COPY."
- Provide:
- Signed cheque favoring "Kotak Mahindra Bank A/c [Your Name]."
- Bank statement, credit card statement, or utility bill (not older than 3 months).
Notes:
- Entry Visa: Accepted with employment contract; submit permanent visa before expiry.
- Bridging Visa (Australia): Submit passport copy with expired visa and email of bridging visa.
Conclusion
Kotak Mahindra Bank’s FCNR account is a good option for NRIs to grow their foreign currency savings safely. It offers competitive interest rates, full repatriation of principal and interest, and tax-free earnings in India. With the flexibility to choose from multiple currencies, it is a smart and secure choice for managing international funds.
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FAQs
What is a Kotak Mahindra Bank FCNR Account?
A Kotak Mahindra Bank FCNR Account is a fixed deposit account for NRIs to hold and earn interest in foreign currency without converting it to Indian Rupees.
Who can open a Kotak Mahindra Bank FCNR Account?
Non-Resident Indians (NRIs) and Persons of Indian Origin (PIOs) can open a Kotak Mahindra Bank FCNR Account.
In which currencies can I open a Kotak Mahindra Bank FCNR Account?
You can open a Kotak Mahindra Bank FCNR Account in USD, GBP, EUR, AUD, SGD, and JPY.
What is the minimum tenure for a Kotak Mahindra Bank FCNR Account?
The minimum tenure for a Kotak Mahindra Bank FCNR Account is 1 year.
What is the maximum tenure for a Kotak Mahindra Bank FCNR Account?
The maximum tenure for a Kotak Mahindra Bank FCNR Account is 5 years.
Are the funds in a Kotak Mahindra Bank FCNR Account repatriable?
Yes, both the principal and interest in a Kotak Mahindra Bank FCNR Account are fully and freely repatriable.
˜Top 5 plans based on annualized premium, for bookings made in the first 6 months of FY 24-25. Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by any insurer. This list of plans listed here comprise of insurance products offered by all the insurance partners of Policybazaar. For a complete list of insurers in India refer to the Insurance Regulatory and Development Authority of India website, www.irdai.gov.in
*Past 10 Year annualised returns as on 01-06-2025
*All savings plans are provided by the insurer as per the IRDAI approved insurance plan. Tax benefit is subject to changes in tax laws. Standard T&C Apply
^The tax benefits under Section 80C allow a deduction of up to ₹1.5 lakhs from the taxable income per year and 10(10D) tax benefits are for investments made up to ₹2.5 Lakhs/ year for policies bought after 1 Feb 2021. Tax benefits and savings are subject to changes in tax laws.
#The investment risk in the portfolio is borne by the policyholder. Life insurance is available in this product. The maturity amount of Rs 2 Cr. is for a 30 year old healthy individual investing Rs 18,000/- per month for 30 years, with assumed rates of returns @ 8% p.a. that is not guaranteed and is not the upper or lower limits as the value of your policy depends on a number of factors including future investment performance. In Unit Linked Insurance Plans, the investment risk in the investment portfolio is borne by the policyholder and the returns are not guaranteed. Maturity Value: 1,06,79,507 @ CAGR 4%; 2,12,15,817 @ CAGR 8%. All plans listed here are of insurance companies’ funds. *Tax benefits and savings are subject to changes in tax laws. All plans listed here are of insurance companies’ funds.
¶Long-term capital gains (LTCG) tax (12.5%) is exempted on annual premiums up to 2.5 lacs.
**Returns are based on past 10 years' fund performance data (Fund Data Source: Value Research).
