FEATURES OF DEPOSIT SCHEMES FOR NON RESIDENT INDIANS ( NRI )

Features of various deposit schemes available to Non-Resident Indians (NRIs) (As on July 1, 2002)

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-à-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:-

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.
No new NRNR account to be opened after March 31, 2002.
NRNR account may be closed or proceeds transferred to NRO account, as desired by the account holder, on September 30, 2002.
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.
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.
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.
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.

For details of tax benefits available against each account please refer to the current income Tax rules.
For the purposes of maintaining an account in India

NRI is a person resident outside India who:

is citizen of India, or
is a citizen of any country other than Bangladesh or Pakistan if

he at any time held Indian passport, or
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
a person is a spouse of an Indian citizen or a person referred to in sub-clause (a) or (b) above

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".

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