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
- 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 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.
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.