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two types of account

  • Non-Resident External

    Non-Resident External Account (NRE)

    Accounts can be opened by remittances from abroad/transfer from existing NRE/FCNR accounts/deposit of foreign exchange brought during visit to India. All types of accounts viz. Current, Savings and Term Deposit Accounts can be opened jointly with any other Non-Resident Indian. NRIs/ PIOs can hold jointly with a resident relative on ‘former or survivor’ basis (relative as defined in Companies Act, 2013). However, during the life time of the NRI/PIO account holder, the resident relative can operate the account only as a Power of Attorney holder.

    Non-Resident Indians can appoint residents to operate their NRE accounts for local payments through a power of attorney / letter of authority. Transfer of funds between NRE accounts of different persons for genuine personal purposes freely permitted. Export payments from NRE account also permitted. Withdrawals for local payments are freely permitted. Forward exchange cover for Term Deposit funds available. Interest paid on maturity or quarterly intervals as per customer's request on Term Deposits. Loans against deposits are available. Nomination facility available. Repatriation of the balance including interest in any convertible currency is permitted.

    Tax Benefits

    Interest earned on these accounts is free from Income Tax in India

  • Non-Resident Ordinary

    Non-Resident Ordinary Account (NRO)

     

    When a Resident acquires the status of NRI, all existing domestic accounts become NRO Accounts. NRO Account can also be opened by remittances from abroad wherein legitimate dues in Rupees of the account holder in India can also be credited. Funds cannot be repatriated without prior permission of RBI.

    NRO accounts may be opened jointly with resident Indian on former or survivor basis only. Interest earnings are subject to Tax deductible at source. All types of accounts viz. Current, Savings and Term Deposits are opened. On application, repatriation of the entire interest income (Net of taxes) earned on the account is permitted. NRIs can remit upto USD 1 million or its currency equivalent, every financial year out of the funds held in NRO accounts Nomination facility available.

    NRO account can also be opened by person of non-Indian Origin (other than individual / entities of Bangladesh / Pakistan nationality / ownership). Opening of accounts by Individuals / entities of Bangladesh / Pakistan nationality / ownership require RBI approval.

  • Foreign Currency Non-Resident

    Foreign Currency Non-Resident Account (FCNR)

     

    Account may be opened in USD, GBP, EURO, AUD, CAD AND JPY in Term Deposits only. No exchange loss as interest and principal are freely repatriable in currency of deposit.

    Deposits can be made by remittances from abroad or by funds held in existing NRE accounts or by depositing foreign exchange brought during visit to India. Accounts can be opened jointly with other Non-resident Indians. Loan facility available in India and abroad. Period varies from 1 Year to 5 years. Interest paid on maturity or half yearly intervals as per customers request. Nomination facility available. Deposits freely transferable between different NRIs for any purpose. Export payments also permitted from FCNR accounts. Forward cover facility also available.

    Other conditions such as credits/debits, joint accounts, loans / overdrafts, operation by power of attorney etc., as applicable to an NRE account will be applicable to FCNR (B) account as well.

     

    Tax Benefits

    Interest earned on these accounts is free from Income Tax in India.

  • Resident Foreign Currency

    Resident Foreign Currency Account (RFC)

     

    A person resident in India is permitted to open a RFC account with an AD Bank in India out of foreign exchange received or acquired by him as permitted in RBI Master Direction.

    Account may be opened in any permitted foreign currency. Joint account permitted with other eligible persons. Account may be opened in the form of Savings, Current or Term Deposits.

    Balance in NRE / FCNR is transferable to RFC account (other than NRE Rupee accounts of erstwhile Bilateral Group of Countries). Balance can be used to make bonafide remittances overseas without any prior approval. Funds arising out of the eligible assets acquired while remaining a NRI including deposits, investment outside India and overseas employment benefits like pension, gratuity etc, are eligible for credit. Balance lying in RFC account may be converted to FCNR / NRE accounts on resident becoming non-resident.

     
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