Forward Cover

Forward Cover
It is a feature generally utilized by Indian residents who indulge in exports and imports of goods. This enables them to be aware of the risks involved in the trade transactions. However RBI guidelines have allowed this service to be extended to NRIs.It allows them to balance the credits and debits of their FCNRn/NRE accounts.

Can I use this service?

Yes, you can if you are an NRI. it allows you to balance the credits and debits of your FCNR/NRE accounts.

What are the other aspects of the forward cover facility?

  • Forward cover can be booked to cover the transactions for a period of six months. In case the amount remains in balance after six months, it can be used for the next six months and so on.
  • The facility is available only for term deposits and not for NRE SB accounts
  • Charges for the using this facility for account transactions will be channeled to the NRE account
  • Any gains resulting from availing the service are subject to the Income tax of India
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