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Banking Accounts

 
Non-Resident External Account (NRE A/c)
Designated Currency Rupees
Nature of Bank A/c Current Account Saving Bank Account, Recurring, Fixed Deposit Account
Operating the Account -
Who is eligible to open the Account? Non-Resident Indian
Joint Account Opening of these with a resident is not permissible. However, joint account in the name of two or more non-resident individual may be open.
Who can operate the Account? Non Resident Indian Account holder. Also the Power of Attorney holder only for local payments. The Power of Attorney holder cannot give gift, repatriate or transfer to another FCNR/NRE account.
Whether Nominations permitted? YES In favour of any Non Resident Indian or Resident Indian. On death of Account holder, NRI nomiee is allowed repatriation. However, resident nominee has to take RBI approval for remittance of funds outside India for meeting the liabilities of the deceased person or for similar purpose.
Transfer of Funds between one Non Resident Indian to another Non Resident Indian YES
Source of Depositing Money Inward Foreign Exchange remittance Funds from Local source of a repatriable nature.Income from specified Assets, which is repatriable.Can also deposit personally unlimited Foreign Currency notes or Travellers Cheques brought to India as Traveller.Refund of application/ earnest money together with interest if any on the deposits paid by Housing Board or Private Agencies may also be allowed to be credited provided the original payments was made out of NRE/FCNR account of holder or from Direct remittance from outside India through normal banking channels and authorised dealer is satisfied about the genuineness of the transaction
Rate of Interest The interest rates are revised frequently. At request, the current interest rates shall be made available.
Taxation of Interest Income Tax free
Loans / Overdraft in RupeesAgainst security of funds to Account holder in India. Permitted for personal purposes or for business activity (subject to certain conditions and its end utilisation).
Repayment From inward remittance or from local Account i.e. NRE/FCNR/ NRO/ RFC account.
Loans / Overdraft in ForexAgainst security of funds to Account holder in India. Permitted for personal purposes or for business activity (subject to certain conditions and its end utilisation).
Liquidity Premature withdrawal is allowed in all the Accounts
Third Party Loans against Security of funds. Loans/overdraft can be granted to resident third parties.
Loan outside India Authorised dealers may allow their branches / correspondents outside India to grant any type of fund/non-fund based facilities to or in favour of Non-resident depositor, or to third parties.
Tax Deducted at Source on Interest NO
Repatriation Principal ALLOWED
Repatriation of Interest ALLOWED
Change of resident status of Account holder from Non-Resident to Resident. On becoming resident in India, the Account should be redesignated as resident account or the funds held in these accounts may be transferred to the RFC account at the option of the account holder.
Miscellaneous
  1. An account may be opened in the name of an eligible NRI during his temporary visit to India against tender of foreign currency travellers cheques or foreign currency notes and coins tendered, provided the authorised dealer is satisfied that the person has not ceased to be a non-resident.
  2. Authorised dealers/authorised banks may at their discretion/commercial judgement allow for a period of not more than two weeks, overdrawings in NRE savings bank accounts, upto a limit of Rs. 50,000 subject to the condition that such overdrawings together with the interest payable thereon are cleared/repaid within the said period of two weeks, out of inward remittances through normal banking channels or by transfer of funds from other NRE / FCNR accounts.
 
Non Resident Ordinary Account (NRO A/c)
Designated Currency Rupees
Nature of Bank A/c Current Account, Saving Bank Account, Recurring, Fixed Deposit Account
Operating the Account -
Who is eligible to open the Account? Non-Resident Indian
Joint Account Account may be held jointly with resident.
Who can operate the Account? Non Resident Indian and Resident Indian Account holder jointly or severally Also Power of Attorney holder
Whether Nominations permitted? YES In favour any Non Resident Indian or any Resident Indian. On death, amount is transferred to NRO Account of NRI nominee.
Transfer of Funds between one Non Resident Indian to another Non Resident Indian YES
Source of Depositing Money Balance in India, Sale proceeds of Indian Assets, Inward Forex remittance, transfer from NRE /FCNR account, Non repatriable income in India. Can also deposit personally unlimited Foreign Currency notes or Travellers Cheques brought to India as Traveller.
Rate of Interest The interest rates are revised frequently. At request, the current interest rates shall be made available.
Taxation of Interest Income Taxable
Loans / Overdraft in RupeesAgainst security of funds to Account holder in India. Permitted for personal purposes or for business activity (subject to certain conditions and its end utilisation).
Repayment From inward remittance or from local Account i.e. NRE/FCNR/ NRO/RFC account.
Loans / Overdraft in ForexAgainst security of funds to Account holder in India. Not permitted
Liquidity Premature withdrawal is allowed in all the Accounts
Third Party Loans against Security of funds. Loans/overdraft can be granted to resident third parties.
Loan outside India Not permitted
Tax Deducted at Source on Interest 30% + Surcharge (as applicable)
Repatriation Principal NOT ALLOWED
Repatriation of Interest ALLOWEDThe entire income earned during the financial year 1996-97 and onwards is eligible for repatriation. The partial repatriation is allowable for Income earned during the year 94 -95, 95-96.You can apply now for repatriation of the interest on from 94-95 onwards.
Change of resident status of Account holder from Non-Resident to Resident. On becoming resident in India, the Account should be redesignated as resident account
Miscellaneous
  1. The operations on the accounts should not result in the account holder making available foreign exchange to any person resident in India against reimbursement in rupees or in any other manner.
  2. At the time of opening of the account, the account holder should furnish an undertaking to the authorised dealer / authorised bank with whom the account is maintained that in cases of debits to the account for the purpose of investment in India and credits representing sale proceeds of investments, he will ensure that such investments/disinvestments will be in accordance with the regulations made by Reserve Bank in this regard.
  3. NRIs/PIOs are allowed to repatriate the funds held in their NRO A/c for the following purposes:

    a.      upto USD 30000 per academic year to meet expenses in connection with education of their children

    b.      upto USD 100000 to meet the medical expenses abroad of the account holder or his family members

     

     

 
Non-Resident Non Repatriable Account (NRNR A/c)
Designated Currency Rupees
Nature of Bank A/c Fixed Deposit Account only for 6 months to 3 Years
Operating the Account No new account can be opened after 1st April 2002.Existing accounts may continue till maturity.
Who is eligible to open the Account? Non-Resident Indian
Joint Account Account may be held jointly with resident.
Who can operate the Account? Non Resident Indian and Resident Indian Account holder jointly or severally Also power of Attorney holder
Whether Nominations permitted? YES In favour of any Non Resident Indian or Resident Indian. On death of Account holder, amount will be paid to such nominee only in Indian Rupee by credit to the nominee's NRO account and will not allow to be remitted outside India.
Transfer of Funds between one Non Resident Indian to another Non Resident Indian YES
Source of Depositing Money From NRE/FCNR Account Inward Foreign remittance Forex brought to India by an NRI who is returning for permanent settlement in India can also deposit personally unlimited Foreign Currency notes or Travellers Cheques brought to India as Traveller.
Rate of Interest The interest rates are revised frequently. At request, the current interest rates shall be made available.
Taxation of Interest Income Tax free in the hands of person who is Non- resident (NR) as per I.T.Act,1961.
Loans / Overdraft in RupeesAgainst security of funds to Account holder in India. Permitted for personal purposes or for business activity (subject to certain conditions and its end utilisation).
Repayment From inward remittance or from local Account i.e. NRE/FCNR/ NRO/ RFC account.
Loans / Overdraft in ForexAgainst security of funds to Account holder in India. Not permitted
Liquidity Premature withdrawal is allowed in all the Accounts
Third Party Loans against Security of funds. Loans/overdraft can be granted to resident third parties.
Loan outside India Not permitted
Tax Deducted at Source on Interest NO till he maintains the status of Non-resident under the Income tax Act. There after TDS is required to be deducted @ 30% + Surcharge (as applicable)
Repatriation Principal and Interest Can be credited to NRE account on maturity. Premature withdrawal will have to be credited to NRO account.
Change of resident status of Account holder from Non-Resident to Resident. On becoming resident in India, the Account should be redesignated as resident account
 
 
Non Resident (Special) Rupee (NRSR) Account Scheme
Designated Currency Rupees
Nature of Bank A/c Current Account, Saving Bank Account, Recurring, Fixed Deposit Account
Operating the Account No new account can be opened after 1st April 2002.Existing accounts may continue till maturity. Savings bank accounts can be continued upto 30th September 2002, after which they have to be transferred to NRO account.
Who is eligible to open the Account? Non-Resident Indian
Joint Account Account may be held jointly with resident.
Who can operate the Account? Non Resident Indian and Resident Indian Account holder jointly or severally Also Power of Attorney holder
Whether Nominations permitted? YES In favour of any Non Resident Indian or Resident Indian. On death, amount is transferred to Account of NRO account of NRI nominee and will not be allowed to be remitted outside India.
Transfer of Funds between one Non Resident Indian to another Non Resident Indian YES
Source of Depositing Money Balance in India, Sale proceeds of Indian Assets, Inward Forex remittance, transfer from NRE /FCNR account, Non repatriable income in India.Can also deposit personally unlimited Foreign Currency notes or Travellers Cheques brought to India as Traveller.
Rate of Interest The interest rates are revised frequently. At request, the current interest rates shall be made available.
Taxation of Interest Income Taxable
Loans / Overdraft in RupeesAgainst security of funds to Account holder in India. Only overdraft is permitted for business activity(subject to certain conditions and its end utilisation).
Repayment From inward remittance or from local Account i.e. NRE/FCNR/ NRO/NRNR/NRSR / RFC account.
Loans / Overdraft in ForexAgainst security of funds to Account holder in India. Not permitted
Liquidity Premature withdrawal is allowed in all the Accounts
Third Party Loans against Security of funds. Not Permitted
Loan outside India Not permitted
Tax Deducted at Source on Interest 30% + Surcharge (as applicable)
Repatriation Principal and Interest On maturity the funds may be transferred to NRO account.
Change of resident status of Account holder from Non-Resident to Resident. On becoming resident in India, the Account should be redesignated as resident account.
Miscellaneous
  1. The operations on these accounts may be allowed freely as in the case of domestic accounts maintained by resident individuals.
  2. The account holder is also permitted to freely transfer funds from NRO/NRE/FCNR accounts to NRSR account but not vice versa.
  3. NRIs has to give an undertaking that he or his heirs/successor will not seek repatriation of funds held or income/interest earned thereon at any time.
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