NON RESIDENT EXTERNAL ACCOUNTS (NRE A/C)
- The account should be opened by the Non-Resident account holder himself and not by the holder of power of attorney in India,
- The account will be maintained in Rupees. The account can be maintained in any form such as Savings, Current, Recurring and Term Deposit etc.,
- The account can be opened jointly with another non-resident/s provided all the account holders are persons of Indian nationality or origin. Opening of accounts with resident Indian is not permitted,
- Opening of Account
- Remittance from abroad,
- Proceeds of Foreign Currency notes/travellers cheques / During the temporary visit of the account holder,
- Proceeds of Draft/personal cheques,
- Transfer from existing FCNR / NRE accounts of same person
Funds held in this account including interest earned thereon are fully repatriable,
Power of Attorney
Power of Attorney for the NRE account can be given to a local person allowing the person to operate the account for local payments, to make eligible investments etc.
Income by way of interest earned on these deposits is exempted from Income Tax. Balances held in these accounts are free from Wealth Tax.
Nomination facility is available for NRE accounts.
Proceeds of Foreign Currency cheques, drafts, travellers cheques, remittances from abroad in foreign currency, proceeds from your existing NRE / FCNR accounts, Interest on Govt. securities and dividend of UTI and other investments in shares and debentures provided that the investments were made by debit to the NRE / FCNR account.
Local Disbursements, Remittances outside India, transfer to NRE/FCNR of your own account. Investments in shares/securities/debentures of an Indian company is permitted subject to regulations in vogue.