Q. Which among the following sentence is INCORRECT regarding Foreign Currency Non Resident (FCNR) accounts in India ?
Answer: FCNR accounts can be maintained only in the form of current / savings account as well as ‘term deposits’
Notes: The incorrect statement is that FCNR accounts can only be maintained in the form of current/savings accounts and term deposits. In reality, FCNR accounts are specifically designed as term deposits, allowing NRIs to hold funds in foreign currencies without the risk of exchange rate fluctuations. They can be maintained in currencies like USD, GBP, EUR, JPY, and AUD. The Reserve Bank of India regulates these accounts, which offer tax benefits and are repatriable.