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Features of various deposit schemes available to Non-Resident Indians (NRIs)

Features of the Deposit Schemes for NRIs Facilities for NRIs - FAQs for NRIs Link to Welcome-nri.com

 

Types of Deposit Schemes

Particulars

FCNR a/c
[Foreign Currency
(Non-Resident) a/c]

NRE a/c
[Non-Resident
(External) Rupee a/c]

NRO
(Non-Resident
Ordinary Rupee a/c)

1.

2.

3.

4.

Who can open an account

NRIs and OCBs

NRIs and OCBS

Any person resident outside India

Joint account of two or more NRIs

Permitted

Permitted

Permitted

 

Joint account with another person resident in India

Not permitted

Not permitted

permitted

 

Currency in which account denominated

Pound Sterling US Dollar, Jap. Yen, or Euro

Indian Rupees

Indian Rupees

 

Repatriability:
Principal

Interest

Freely repatriable


Freely repatriable

Freely repatriable


Freely repatriable

Not repatriable


Freely repatriable

Foreign Currency Risk

Account holder is protected against changes in INR value vis--vis the currency in which the account is denominated

Account holder is exposed to the fluctuations in the value of INR

Account holder is exposed to the fluctuations, in the value of INR to the extent of interest amount

Type of accounts

Term deposits only

Current
Savings
Recurring
Fixed Deposits

Current
Savings
Recurring
Fixed Deposits

Period for fixed deposits

For terms not less than 1 year and not exceeding 3 years

For the periods as announced by the deposit taking bank

For the periods as announced by the deposit taking bank

Rate of interest

Banks are free to determine interest rates within the ceiling, if any, prescribed by the Reserve Bank

Banks are free to determine interest rates.

Banks are free to determine interest rates.

 

Rupees Loans in India against Security of the funds held in the account to:

1.

2.

3.

4.

1) a/c holders

Permitted

Permitted

Permitted

2) third party

Permitted

Permitted

Permitted

Foreign currency loans outside India against Security of the funds held in the account to:

1) a/c holders

Permitted

Permitted

Not permitted

2) third party

Permitted

Permitted

Not permitted

Foot Note:-

  1. Proceeds of NRNR deposits maturing on or after 1-4-2002 may be credited to NRE A/c/NRO A/c at the option of the account holder.
  2. No new NRNR account to be opened after March 31, 2002.
  3. NRNR account may be closed or proceeds transferred to NRO account, as desired by the account holder, on September 30, 2002.
  4. The account holder may choose to credit the maturity proceeds to the NRE saving bank account or current account or open a fresh NRE term deposit account.
  5. No new NRSR account to be opened after March 31, 2002. The existing NRSR term deposit accounts may be continued till maturity and the maturity proceeds may be credited to NRO A/c of the Account holder.
  6. The existing NRSR account other than term deposit not to continue after September 30, 2002. On the closure of the account the balance to be credited to/transferred to NRO A/c of the account holder.
  7. The existing NRSR account other than term deposit not to continue after September 30, 2002. At the option of the account holder it may be closed or balance thereof may be credited to his NRO account on or before that date.

Notes:

Nomination facilities, for nominating either a resident or a non-resident are available, in all types of accounts maintained in the name of individuals only.

     

  1. For details of tax benefits available against each account please refer to the current income Tax rules.
  2. For the purposes of maintaining an account in India
  1. NRI is a person resident outside India who:
  1. is citizen of India, or
  2. is a citizen of any country other than Bangladesh or Pakistan if
    1. he at any time held Indian passport, or
    2. he or either his parents or any of his grand parents were citizen of India by virtue of the constitution of India or the Citizenship Act, 1955 (57 of 1955), or
    3. a person is a spouse of an Indian citizen or a person referred to in sub-clause (a) or (b) above

     

  1. OCB is defined as:

"a company, partnership, firm, society or any other corporate body owned directly or indirectly to the extent of at least 60% by non-resident Indian and includes overseas Trust in which not less than 60% beneficial interest is held by non-resident Indians directly or indirectly but irrevocably".