Banking

Non resident Indians (NRIs) can open various types of Account with banks. Accounts can be maintained by NRIs either in Rupee or in specified currencies viz.; US DOLLAR, POUND STERLING, EURO.

The information given below vividly describe the various NRI accounts and the facilities available with leading nationalised banks. You may choose to open any number of NRI accounts suitable to your needs.

NRE (non resident external) -

The Non Resident External (NRE) Savings Account is meant for Indians residing abroad. It allows you to transfer foreign earnings easily to India.The following are the few important points regarding the NRE account.

  • NRE account can be opened as Savings and Fixed deposit accounts.
  • There is no tax on interest earned from these accounts. Also there is no wealth tax.
  • That the above tax exemptions are available only for an NRE Account held by an individual and not for those maintained by OCBs (Overseas Company Bodies)
  • The currency maintained in this account is Indian Rupee.
  • Can open Joint account with any Non-Resident Indian. Cannot open Joint account with Indian Resident .
  • You can easily transfer money to India.
  • Nomination is allowed in NRE Accounts.
  • Can not deposit Indian Currency in to this account.

FCNR (foreign currency deposit account)

The following are the key points for Foreign Currency Non-Resident (FCNR) Fixed Deposit bank account:

  • Earn Indian Interest Rates on your Foreign Currency deposits with our Foreign Currency Non-Resident Fixed Deposit.
  • The entire deposit (principal and interest) is exempt from tax
  • Open the deposit jointly with any other NRI
  • Get an overdraft on your Savings / Current account against your FCNR Fixed Deposit
  • Nomination Facility available
  • Joint accounts with Indian Residents not allowed
  • Following Currencies are allowed in this account:
  • US Dollars,Pounds Sterling,Euro,Japanese Yen,Canadian Dollars,Australlian Dollars
  • Can not deposit Indian Currency in this account.
  • Minimum 1 year and maximum 5 years is allowed.

NRO Savings Fixed Deposit Account

The following are the key points on NRO account.

  • NRO account can be opened as the Savings or Fixed Deposit account.
  • Currency maintained in this account is Indian Rupee.
  • Can open this account with any Indian Resident.
  • Interest earned in this account is 30% taxable and surcharge and education cess will be included. It is applicable for both savings and fixed deposit accounts.
  • You can use this account to pay any bill and expenses in India.
  • Enjoy the convenience of banking at any of our branches in India.
  • Nomination is allowed in NRO Accounts.
  • Can deposit Indian Currency in to this account

NRNR (non resident rupee deposits)

This account is in the form of Indian Rupee fixed deposit. Funds for the purpose of deposit can be remitted from abroad / transferred from existing NRE/FCNR accounts. Premature withdrawal from NRE/FCNR freely allowed for investment in NRNR deposit. Period of deposits from six months to three years. Interest earned is repatriable, but the principal is NON-REPATRIABLE.

This account is in the form of Indian Rupee fixed deposit. Funds for the purpose of deposit can be remitted from abroad / transferred from existing NRE/FCNR accounts. Premature withdrawal from NRE/FCNR freely allowed for investment in NRNR deposit. Period of deposits from six months to three years. Interest earned is repatriable, but the principal is NON-REPATRIABLE.

Others:

  • NRO account can be held jointly with resident Indians. NRE account cannot be held jointly with resident Indian, however a power of attorney to operate the account can be given by NRI in favour of a resident Indian.
  • In case of NRNR deposits, the principal amount of the deposit is not eligible for repatriation. Interest earned upto 30th September 1994 is also not eligible for repatriation. Interest earned for the period beginning 1st October 1994 is, however, eligible for repatriation.
CERTIFIED FINANCIAL PLANNER,CFP are owned by Financial Planning Standard Board Ltd.(FPSB)outside the United States. FPSB India is the marks licensing authority for the CFP marks in India through agreement with the FPSB. Copyright © | Software solutions for financial planners by Wolters Kluwer.