The FCNR(B) deposits of persons of Indian nationality/origin who return to India for permanent settlement may be allowed to be continued till maturity at the contracted rate of interest, if desired. However, except the provisions relating to rate of interest and reserve requirements as applicable to FCNR(B) deposits, for all other purposes such deposits would be treated as resident deposits from the date of return of the accountholder to India. In case the FCNR(B) deposits are withdrawn before maturity, the directions issued in this regard by Reserve Bank including directions, if any, about levy of penalty would be applicable. Authorised dealers should convert the FCNR(B) deposits on maturity into resident rupee deposits accounts or RFC account (if eligible), at the option of the accountholder and interest on the new deposit (rupee account or RFC account) would be payable at the relevant rate applicable for such a deposit.