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Type of
Accounts

Type of Accounts

NRE Accounts

What are the types of NRE account available?

Non Resident Indians can hold

  • NRE Savings Bank account
  • NRE Term Deposits
  • NRE Cumulative term deposits
  • NRE Recurring deposits

What are the permitted credits to NRE accounts?

The following credits are permitted

  • Proceeds of remittances to India in any permitted currency
  • Proceeds of personal cheques drawn by the account holder on his foreign currency accounts, travelers cheques or bank drafts deposited by the account holder in person during his temporary visit to India. The traveler's cheques (issued outside India)/ bank drafts should be standing/ endorsed in the name of the account holder
  • Proceeds of foreign currency/ bank notes tendered by the account holder during his temporary visit to India and should be supported by a Currency Declaration Form wherever applicable
  • Transfers from other NRE/ FCNR accounts
  • Interest accruing on the funds held in the account
  • Interest on Government securities and dividend on units of mutual funds, provided the securities/units were purchased by debit to the account holder's NRE/ FCNR account or out of inward remittance through normal banking channels
  • Maturity proceeds of Government securities provided they were originally purchased by debit to the account holder’s NRE/FCNR account or out of remittances received from outside India in free foreign exchange
  • Refund of share/debenture subscriptions to new issues of Indian companies or portion thereof, if the amount of subscription was paid from the same account or from another NRE/FCNR account of the account holder or by remittance from outside India through normal banking channels
  • Refund of application/earnest money/purchase consideration made by the house building agencies/seller on account of non-allotment of flat/plot/cancellation of bookings/deals for purchase of residential/commercial property, together with interest if any (net of income tax payable thereon), provided the original payment was made from an NRE/FCNR account of the account holder or remittance from outside India through normal banking channels

What are the permitted debits to NRE accounts?

The following debits are permitted

  • Local disbursements
  • Remittances outside India
  • Transfer to NRE/FCNR account of the account holder or any other person eligible to maintain such an account
  • Investment in shares/securities/commercial paper of an Indian company or for purchase of immovable property in India provided such investment /purchase deals covered by the regulations made, or the general/special permission granted by the Reserve Bank