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Type of
Accounts

Type of Accounts

NRE ACCOUNT

Features

  • It is maintained in Indian Rupee
  • May be opened in the form of Saving , Current , Recurring and Term Deposit
  • Account can be opened jointly with resident with operating instruction "Former or survivor"
  • Power of attorney holder can operate the account
  • A Power of attorney holder can not do the following acts
    • Open and close NRI accounts in the name of NRI
    • Repatriate funds from accounts in the form of Demand draft /Telegraphic transfer
    • Make payment by way of gift
    • Transfer fund to other NRE accounts
    • Can not raise loans / execute documents on behalf of NRI
    • Can not tender Foreign Currency /Foreign Currency Travellers cheques for credit of account
  • Interest earned on NRE accounts are not taxable
  • Minimum period for term deposit is One year and maximum period is 10 years
  • Nomination facility available . NRI can nominate resident or Non resident as nominee

Permissible Credit

  • Proceeds of Remittance to India in any permitted currency
  • Proceeds of personal cheque drawn by account holder on his foreign currency account
  • Bank drafts payable in any permitted currency including instruments expressed in Indian rupees for which reimbursement will be received in foreign currency, deposited by the account holder in person during his temporary visit to India provided the authorised dealer/bank is satisfied that the account holder is still resident outside India
  • Proceeds of traveller cheques standing/endorsed in the name of account holder and in case of traveller cheques they are issued outside India
  • Proceeds of Foreign currency notes tendered in person by Account holder himself during his temporary visit to India
  • Transfer from other NRE /FCNR account
  • Interest accruing on the funds credited to the account
  • Interest on Govt 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 channel
  • Maturity proceeds of Government securities including National Plan/Savings Certificates as well as proceeds of Government securities and units of mutual funds sold on a recognised stock exchange in India and sale proceeds of units received from mutual funds, provided the securities/units were originally purchased by debit to the account holders'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 or from other NRE/FCNR account of the account holder or by remittance from outside India through normal banking channel
  • Refund of application /earnest money made by the house building agencies on account of non allotment of flat /plot , together with interest ,if any ( net of income tax payable thereon ) , provided the original payment was made out of NRE /FCNR Account of account holder

Permissible Debits

  • Local Disbursement
  • Remittance outside India
  • Transfer to NRE / FCNR account of account holder or any other person eligible to maintain such account
  • Investment in shares/securities /Commercial paper of Indian company or purchase of immovable property in India provided such investment /purchase is made covered under regulations made or general /special permission granted by RBI

NRO ACCOUNT

Features

  • It is maintained in Indian Rupee
  • May be opened in the form of Saving , Current , Recurring and Term Deposit
  • Account can be opened jointly with resident with operating instruction "Former or survivor"
  • Power of attorney holder can operate the account
  • A Power of attorney holder can not do the following acts
    • Open and close NRI accounts in the name of NRI
    • Make payment by way of gift
    • Can not raise loans / execute documents on behalf of NRI
  • Interest credited on NRO accounts are subject to TDS @ 30.90%p.a
  • Minimum period for term deposit is 1year and maximum period is 10 years
  • Nomination facility available . NRI can nominate resident or Non resident as Nominee

Permissible Credit

  • Proceeds of remittances from outside India through normal banking channels received in any permitted currency.
  • Any foreign currency, which is freely convertible, tendered by the account holder during his temporary visit to India. Foreign currency exceeding USD 5000 or its equivalent in the form of cash should be supported by currency declaration form. Rupee funds should be supported by encashment certificate, if they represent funds brought from outside India.
  • Transfers from rupee accounts of Non Resident banks.
  • Legitimate dues in India of the account holder. This includes current income like rent, dividend, pension, interest, etc.
  • Sale proceeds of assets including immovable property acquired out of rupee / foreign currency funds or by way of legacy /inheritance.
  • Resident individual may make a rupee gift to a NRI/PIO who is a close relative of the resident individual [close relative as defined in Section 6 of the Companies Act, 1956] by way of crossed cheque /electronic transfer. The amount shall be credited to the Non Resident (Ordinary) Rupee Account (NRO) a/c of the NRI / PIO and credit of such gift amount may be treated as an eligible credit to NRO a/c. The gift amount would be within the overall limit of USD 250,000 per financial year as permitted under the Liberalised Remittance Scheme (LRS) for a resident individual.
  • Resident individual to lend to a Non Resident Indian (NRI)/ Person of Indian Origin (PIO) close relative [means relative as defined in Section 6 of the Companies Act, 1956] by way of crossed cheque /electronic transfer, subject to conditions within the overall limit under the Liberalised Remittance Scheme of USD 250,000 per financial year available for a resident individual. The loan amount should be credited to the NRO a/c of the NRI /PIO. Credit of such loan amount may be treated as an eligible credit to NRO a/c.

Permissible Debits

  • All local payments in rupees including payments for investments in India subject to compliance with the relevant regulations made by the Reserve Bank.
  • Remittance outside India of current income like rent, dividend, pension, interest, etc. in India of the account holder.
  • Remittance up to USD one million, per financial year (April- March),by NRI subject to payment of tax, as applicable.
  • Transfer to NRE account of NRI within the overall ceiling of USD One million per financial year subject to payment of tax, as applicable

FCNR ACCOUNT

Features

  • It is maintained in Foreign currency
  • It is maintained in the form of Term Deposit
  • We accept FCNR Deposit in three currencies namely USD , GBP and EURO
  • We accept FCNR Deposit for maximum period of 2 yrs . Minimum period for FCNR Deposit is One Year.