Structured Rupee Plan

Structured Rupee Plan

Few private banks in India is offering a deposit structured products that combine features of FCNR account + Forward contract for INR.

This structured deposit scheme which is an attractive opportunity to earn additional yield, over and above FCNR deposit interest rates, by booking a forward contract. Premium Rupee Plan is ideal for customers who wish to multiply their FCNR(B) deposit returns and entail maturity proceeds in Indian Rupees

How this Plan works

Money is put in USD/GBP/EUR/ YEN/AUD denominated FCNR deposit, which earns interest as per prevailing FCNR interest rates. At the time of booking the FCNR, a Forward Agreement is drawn to exchange the maturity amount of the foreign currency in INR at a predetermined exchange rate (Forward Rate).

Salient Features

·         Higher returns than NRE FD & FCNR deposits

·         No capital risk as money is invested as FCNR Fixed Deposit

·         Maturity funds in NRE account (INR) are tax free and freely repatriable

·         Easy documentation

·         Protection from exchange rate fluctuation

·         Funds can be bought in any convertible currency, which will be converted to USD/GBP/EUR/      YEN/AUD, as per your request

·         Minimum Deposit amount various USD 10,000 to 25,000 (minimum deposit requirements various bank to banks)

·         This  Plan is available for tenures upto maturity of FCNR (B) deposit

 

Below are example/ Indicative Rupee Plan (RP) calculations for USD 100,000 for period of 1 year.

 

Particulars

USD

USD

USD

1 Year

3 years

5 years

USD Amount

100,000

100,000

100,000

INR Equivalent Amount

6,065,000

6,065,000

6,065,000

Actual Conversion rate (INR to USD)

60.65

60.65

60.65

FCNR Rate of Interest

2.36%

3.21%

3.90%

FCNR Maturity Amount (in USD)

102,407.09

110,179.35

121,638.75

Forward rate (USD to INR)

65.12

72.97

80.30

INR value on maturity of USD

6,668,750

8,039,787

9,767,592

Annualized Return in PRP

9.95%

9.85%

10.00%

Gross Yield over 1 year (Simple Avg)

9.95%

10.85%

12.21%

*above figures are indicative, actuals would vary at the time of booking deposit

 

Some Points to be aware of and to be shared with Customers :

1. The above product is done on basis of a contract done on the FCNR deposit. It is not advisable to break the investment in between which may lead to loss on your capital investment too depending on the forex situation at the time you require to break it - NO LIQUIDITY

2. The return shown above will move up and down every day and would be communicated clearly at the time of executing your deal.

3. The above product is lucrative for customers who want the returns in the end in INR only.

  • Most of the banks in India are offering this deposit scheme is different names (like ICICI Bank Rupee Plus Plan, Kotak Rupee Advantage Plan Deposit, Yes Bank Premium Rupee Plan etc)

 .  For more details, please get in touch with your banker 

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