Module: | FCNR(B) & Special Provisions
Q10: Which of the following statements regarding the renewal of FCNR(B) deposits are correct?
1. If the period from maturity to renewal does not exceed 14 days, the interest rate is the lower of the rates prevailing on the maturity date or the renewal date.
2. If the period from maturity to renewal exceeds 14 days, the interest for the overdue period is determined by treating the overdue period as a fresh term deposit.
3. If the period from maturity to renewal exceeds 14 days, no interest is paid for the overdue period.
2. If the period from maturity to renewal exceeds 14 days, the interest for the overdue period is determined by treating the overdue period as a fresh term deposit.
3. If the period from maturity to renewal exceeds 14 days, no interest is paid for the overdue period.
✅ Correct Answer: A
For FCNR(B) renewals, if the gap is ≤14 days, the rate is the lower of maturity or renewal date rates.
If >14 days, the overdue period is treated as a fresh term deposit.
These specific calculation methods for Interest Rates on Deposits ensure standardization in handling foreign currency renewals.
If >14 days, the overdue period is treated as a fresh term deposit.
These specific calculation methods for Interest Rates on Deposits ensure standardization in handling foreign currency renewals.