NRI Savings Account

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.
  • Joint accounts can be opened by two or more NRIs and /or PIOs or by an NRI/PIO with a resident relative(s) on ‘former or Survivor’ basis. 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.
  • Opening of Account
    1. Remittance from abroad
    2. Proceeds of Foreign Currency notes/travellers cheques / During the temporary visit of the account holder
    3. Proceeds of Draft/personal cheques
    4. Transfer from existing FCNR / NRE accounts of same person
Repatriation

Funds held in this account including interest earned thereon are fully repairable

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.

Tax Benefits

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

Nomination facility is available for NRE accounts.

Permitted Credits

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.

Permitted Debits

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.

NON-RESIDENT ORDINARY ACCOUNT
  • You can open Rupee Checking Accounts, namely Rupee Savings Account or Rupee Current Account and Rupee Fixed Deposit Accounts. This account will be maintained in Indian Rupees.
  • Non-Resident Indians and Persons of Indian Origin can open this type of account.
  • When you become non-resident, the Rupee accounts held by you prior to your becoming non-resident get designated as Non-Resident Ordinary accounts. These accounts are for Non-Resident Indians who need an account to credit local dues like rent from property etc.
Types of Accounts

All types of accounts can be opened under the scheme such as Current, Savings, Recurring and Term Deposit.

Joint accounts

Joint accounts can be opened by two or more NRIs and /or PIOs or by an NRI/PIO with a resident relative(s) on ‘former or Survivor’ basis. 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.

Account Opening

The account can be opened by the following funds:

  • Remittance from abroad.
  • Proceeds of Foreign Currency/notes/travellers cheques during the temporary visit of the account holder
  • Proceeds of Drafts/personal cheques
  • Transfer from existing FCNR/NRE accounts of same person and
  • Funds from local sources representing bonafide transactions in Rupees
  • Current income such as rent, dividend, pension, interest etc., net of applicable taxes
Permitted Credits

Proceeds of remittances received from outside India through normal banking channel or foreign currency notes tendered by the account holder during his temporary visit to India or transfers or legitimate dues in India of the account holder.

Permitted Debits
  • All local payments in Rupees including payments for investments, subject to compliance with RBI regulations
  • Remittance outside India of current income in India net of applicable taxes.
Interest Rates

Interest Rates on these accounts are the same as domestic rates.

Income Tax

Interest earned on these deposits shall be subject to at source deduction of Income tax at prevailing rates.