Module: | FCNR(B) & Special Provisions
Q9: Are banks permitted to accept recurring deposits under the FCNR(B) Scheme?
✅ Correct Answer: C
Banks are explicitly prohibited from accepting recurring deposits under the FCNR(B) Scheme; these must be Term Deposits only.
This restriction is a key part of the FCNR(B) Scheme Rules, which differentiate foreign currency liabilities from standard domestic Interest Rates on Deposits.
This restriction is a key part of the FCNR(B) Scheme Rules, which differentiate foreign currency liabilities from standard domestic Interest Rates on Deposits.