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1.
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What is the minimum amount we expect? What are the tenors
we can offer? |
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2.
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What are the key benefits of Twin Currency Plan? |
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3.
|
Is there any risk involved when you open a Twin Currency
Plan Account? |
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4.
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Is it a Fixed Deposit? |
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5.
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Is the income tax free? |
| 6. |
Is the deposit FDIC insured? |
| 7. |
Will I get the money back in dollars only? |
| 8. |
How would the receipt and other documents be issued? |
| 9. |
What happens if the rupee appreciates or depreciates
over a period of time? |
| 10. |
Will loans be granted against the deposit? |
| 11. |
Do you
have the choice of cancelling the contract? If so what
is the damage? |
| 12. |
Should
I break my existing FCNR deposits with the bank and
put the money into this product? |
| 13. |
Can I directly
put the maturity proceeds into a NRE Fixed Deposits
without converting it into foreign currency? |
| 14. |
If I remit
money today, what rate / yield will I get? |
| |
| 1. |
What
is the minimum amount we expect? What are the tenors
we can offer? |
| |
We expect a minimum ticket
size of Rs. 15 lakhs. We are currently offering the
plan for 6 months to 3 years. However you can book a
forward cover anytime between 12th to the 2nd month
prior to the maturity of your deposit. |
| |
|
| 2. |
What
are the key benefits of Twin Currency Plan? |
| |
- You can choose the maturity currency.
- Interest earned on TCP is exempt from income tax
in India. Maturity amount is completely repatriable.
- You can deposit an amount as low as Rs.15 lakhs.
|
| |
|
| 3. |
Is there
any risk involved when you open a Twin Currency Plan
Account? |
| |
There is a risk involved
to some extent. Only returns in rupee terms are fixed.
TCP by definition gives you choice to choose the maturity
currency at a later date. Hence, the exchange rate risk
lies with you. |
| |
|
| 4. |
Is it
a Fixed Deposit? |
| |
Yes, the money is put in a NRE Rupee Deposits.
|
| |
|
| 5. |
Is the
income tax free? |
| |
The underlying Fixed Deposit is a NRE Fixed Deposits.
Interest earned on NRE Fixed Deposits is exempt from
income tax in India.
|
| |
|
| 6. |
Is the
deposit FDIC insured? |
| |
The insurance available
with deposits held with Indian banks is that for every
client, Deposit Credit Insurance Guarantee Corporation
of India insures an amount up to Rs. 1 lakh. The underlying
deposit is NRE Fixed Deposits and is not FDIC insured. |
| |
|
| 7. |
Will
I get the money back in dollars only? |
| |
You have the choice to
get the money back in the following currencies - USD,
GBP, Euro, AUD, SGD, CAD and INR. The money is made
available either in INR or the same foreign currency
as was initially given to the bank. |
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|
| 8. |
How would
the receipt and other documents be issued? |
| |
A confirmation letter along
with the agreement is sent to the branch representative,
who in turn has to send it to you. |
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|
| 9. |
What
happens if the rupee appreciates or depreciates over
a period of time? |
| |
If the rupee appreciates
at a later date, you have the choice of getting the
maturity proceeds in INR. If it depreciates, you can
get the maturity proceeds in the foreign currency. You
will get Foreign Currency only if you had executed a
forward contract. |
| |
|
| 10. |
Will
loans be granted against the deposit? |
| |
Yes, loans up to 75% of
the deposit amount are available. |
| |
|
| 11. |
Do
you have the choice of cancelling the contract? If so
what is the damage? |
| |
Normally, a premature
withdrawal is not permitted. However, in exceptional
circumstances, if you wish to do so, you are permitted
to withdraw the deposit only after you have paid for
the cancellation charges of the forward contract. |
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|
| 12. |
Should
I break my existing FCNR deposits with the bank and
put the money into this product? |
| |
We wouldn't advice you
to do that, especially if the FCNR has run for a period
of less than 1 year (no interest payable if the deposit
is broken before1 year). Even if the deposit has run
for a period of 1 year, since there is a 1% premature
withdrawal penalty, it mitigates the effect of the higher
yields obtained through the TCP. |
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|
| 13. |
Can I directly
put the maturity proceeds into a NRE Fixed Deposits
without converting it into foreign currency? |
| |
Yes, this is possible
only if you have not exercised the choice of getting
the maturity proceeds in foreign currency. |
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|
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14.
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If I
remit money today, what rate / yield will I get? |
| |
The yield applicable or
the value date of the deposit would be the day we receive
the funds in ICICI Bank Nostro Account. Only after receiving
the funds can we book a forward contract and guarantee
the yields. |
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