Forward Contract

You have the choice of booking a forward contract anytime between maturity periods - 1 year up to maturity period - 2 months. However, you can book a forward contract for a particular deposit only once. Also, you can book a forward contract for a minimum amount of Rs. 1 million to a maximum of the maturity proceeds of the deposit. For example: If you have opened a TCP for 3 years with the initial amount of Rs. 2,000,000 or the equivalent in US Dollars, you can take a forward contract anytime after 2 years up to 2 years 10 months. Also, you can opt for booking a forward contract for Rs. 1 million. Here you would get half the maturity proceeds in US Dollars and the remaining in Rupees.

Forward Contract Terms

Till a forward contract is not booked, premature withdrawal is permitted with the existing rules (1% penalty on all amounts withdrawn > Rs. 15 lakhs). If a forward contract is booked, under normal circumstances premature withdrawal of the deposit will not be permitted and the deposit will run till maturity. In case of death of Account holder premature closure will be allowed and proceeds repaid after deduction of loss incurred on cancellation of forward rate contract. However, if the legal heir / nominee wants to hold the deposit to maturity then we should follow his/her instructions. All other terms and conditions applicable to NRE deposits will be applicable for the Twin Currency Plan.

To open TCP