The IOB NRI Plus Deposit refers to a type of deposit account offered by Indian Overseas Bank (IOB) specifically designed for Non-Resident Indians (NRIs). Here’s a brief overview of what this type of deposit typically includes:
Salient Features:
The IOB NRI Plus deposit can be opened by Non-Resident Indians in currency USD as FCNR(B) deposit.
The USD FCNR(B) deposit is with compulsory forward cover i.e., Rate of interest is payable as applicable to FCNR(B) deposits and as the product is with compulsory booking of Forward Cover, the forward premium receivable will be the additional yield of the said deposit.
The deposit can be opened in FCNR(B) designated branches.
The deposit will be available for depositors who agree to receive their USD FCNR(B) proceeds in repatriable Indian Rupees. Maturity proceeds of IOB NRI deposits will be paid only in Repatriable Indian Rupees.
The minimum amount of Deposit that can be made under the scheme is USD 5,000. The deposit can be opened out of fresh Foreign Currency remittances and by transfer from NRE accounts/Rupee remittances by conversion from INR to US Dollars/renewal of existing FCNR(B) accounts.
The period of Deposit is 12 months, and the maturity of the Forward contract should coincide with the maturity of the IOB NRI Plus deposit.
ln the event of premature closure of deposit, no interest will be paid and the cost of cancellation of the forward contract will have to be borne by the depositor and the swap gain if any will not be paid.
The deposit under IOB NRI Plus cannot be given as security for availing Foreign Currency Loans abroad.
Rupee Loans can be granted on the same terms and conditions as applicable to FCNR deposits. The rate of interest payable & minimum margin on such loans is as applicable to loan against FCNR Deposits. The Rupee component of the Loan will be based on the notional rate ruling on the date of loan.
The advantages of investing in "IOB NRI Plus" are as follows:
The deposit offers better return compared to NRE Term deposits/FCNRB deposits as forward cover is taken to provide fixed returns in Indian Rupees on the date of maturity. Due to forward cover, returns are guaranteed on maturity regardless of currency fluctuations.
No charges for booking Forward Contract under the scheme.