N.R. Accounts can be opened by an NRI after completing the prescribed account opening form. The form could be countersigned / introduced by a person known to the bank/ Indian Embassy/ Indian High Commission/ Notary Public in the country of residence of the account holder.
Accounts can be maintained by NRIs either in rupees or in foreign currency.
Two types of rupee accounts. viz. Non Resident (External) Rupee Accounts (NRE accounts), Ordinary Non Resident Rupee Accounts (NRO accounts) permitted to be maintained.
Yes. Funds for opening of or credit to NRE accounts have, however, to be remitted from abroad or tendered in the form of foreign currency notes, travellers cheques etc. while on a visit to India.
Yes. However credits exceeding US$ 10,000 or its equivalent representing proceeds of foreign currency notes/ travellers cheques will be allowed provided they were declared to the Customs in the Currency Declaration form at the time of entry into India (Out of this amount, maximum limit for currency notes is US$ 5000 or its equivalent).
Funds remitted from abroad and which are of repatriable nature can be credited to NRE accounts. Local funds which do not qualify, under the exchange control regulations, for remittance outside India can be credited to NRO accounts.
What is the rate of interest payable on such accounts? The accounts can be maintained in any form, i.e Current, Saving or Fixed Deposit Accounts. The rates of interest are fixed by the Bank / Reserve Bank of India which are subject to change from time to time.
Yes. Individual credits beyond Rs.10,000 have,. however to be supported by documentary evidence to indicate that the funds represent legitimate dues of the account holder.
Debits for local disbursements are allowed freely. Credits to the accounts of funds emenating from a local source would be permissible only if the funds are of a repatriable nature and can be remitted by the account holder abroad.
Banks in India have been authorised to allow repatriation of funds held in NRE accounts freely. Funds held in NRO accounts which would generally be from a local source cannot ordinarily be repatriated outside India. Reserve Bank would consider repatriation of such funds on the merits of each case provided it is satisfied that the funds are of a repatriable nature and have not also lost their identity.
Yes. Bank maintaining the accounts have been authorised to permit such utilisation.
The NRNR a/c holder has the option to directly credit the maturity proceeds to the NRE account but NOT to FCNR(B) A/C.
No. The proceeds of NRNR deposits can be credited to NRE A/C only on maturity and in case of premature withdrawal the proceeds shall be credited only to NRO A/C.
The NRO scheme remains unchanged . Therefore the balance held in such accounts continue to remain no-repatriable. The quantum of deposites representing only current income (like pension, dividend, rent, interest etc.)will be permitted to be repatriated outside India.
FCNR accounts can be maintained in Pound Sterling, US dollar, Japanese Yen and Euro. Presently the bank is not quoting interest rates for Japanese Yen deposits.
ECS debit system
No. FCNR Accounts can be maintained only in the form of "term deposit" i.e. a deposit kept for a fixed period or which is subject to withdrawal or repayment after notice.
FCNR account can be opened for a maximum of 5 years.
Yes, however this is subject to the levy of a penalty.
Interest in such cases is paid at one per cent below the interest rate payable for the period for which the deposit has actually remained with the bank.
While the premature withdrawal would be allowed, no interest would be payable.
The rates are based on the rates prevailing in international markets for the currencies concerned for deposits of comparable maturities and are, therefore, liable for change. But deposits will continue to earn the contracted rates till maturity. Interest rate on FCNR deposits are fixed by the bank from time to time which are very competitive.
Debits for local payments are allowed freely.
Income from interest on monies standing to the credit of accounts other than NRO accounts is exempt from income tax. Gifts from such accounts are also free of Gift tax.
NRIs can maintain any one or all types of NRI accounts with our branches in India.
Yes. Loans/ overdrafts can be given to the account holders against the collateral/ security of all types of Non Resident deposits. The regulations relating to loans/ overdrafts are different for different NRI accounts. Loans/ overdrafts cannot be given for carrying on agricultural / plantation activities or for investment in the real estate business.
Loans to third parties are allowed against the collateral/ security of NRI deposits subject to fulfilment of certain formalities. Loans/ overdrafts cannot be given for carrying on agricultural/ plantation activitiess or for investment in real estate business.
Yes. Commercial rate of interest as applicable is charged if the adjustment is done in Indian Rupees.