| Particulars |
Foreign Currency (Non-Resident) Account (Banks) Scheme (FCNR(B) Account) |
Non-Resident (External)Rupee Account Scheme (NRE Account) |
Non-Resident Ordinary Rupee Account Scheme (NRO Account) |
| Who can open an account |
NRIs (individuals / entities of Bangladesh/ Pakistan Nationality/ownership require prior approval of RBI) |
NRIs (individuals / entities of Bangladesh / Pakistan nationality / ownership require prior approval of RBI) |
Any person resident outside India (other than a person resident in Nepal and Bhutan). (individuals / entities of Bangladesh / Pakistan nationality / ownership as well as erstwhile OCBs require prior approval of RBI). |
| Joint account |
In the names of two or more non-resident individuals |
In the names of two or more non-resident individuals |
May be held jointly with residents |
| Nomination |
Permitted |
Permitted |
Permitted |
| Currency in which account is denominated |
Pound Sterling, US Dollar, Jap. Yen, Euro, Canadian Dollar and Australian Dollar. |
Indian Rupees |
Indian Rupees |
| Repatriability |
Repatriable |
Repatriable |
Not repatriable except for the following in the account - 1) Current income 2) Upto USD 1 Million per financial year (April- March), for any bonafide purpose out of the balances in NRO account / sale proceeds of assets in India acquired by way of inheritance / legacy inclusive of assets acquired out of settlement subject to certain conditions. |
| Particulars |
Foreign Currency (Non-Resident) Account (Banks) Scheme (FCNR(B) Account) |
Non-Resident (External)Rupee Account Scheme (NRE Account) |
Non-Resident Ordinary Rupee Account Scheme (NRO Account) |
| Type of Account |
Term Deposit only |
Savings, Current, Recurring, Fixed Deposit |
Savings, Current, Recurring, Fixed Deposit |
| Period for fixed deposits |
For terms not less than 1 year and not more than 5 years. |
At the discretion of the bank |
As applicable to resident accounts. |
| Rate of Interest : |
Subject to cap : LIBOR / SWAP rates for the respective currency / corresponding maturities (Plus 100 basis points as on date - Jan’09). |
Subject to cap : Fixed Deposits: LIBOR / SWAP rates, as on the last working day of the previous month, for US dollar of corresponding maturities (plus 175 basis points as on date - Jan’09). Savings Bank Account Interest rate shall be at the rate applicable to domestic savings account with effect from close of business in India on 17-11-2005. |
Banks are free to determine interest rates for term deposits. |
| Particulars |
Foreign Currency (Non-Resident) Account (Banks) Scheme (FCNR(B) Account) |
Non-Resident (External)Rupee Account Scheme (NRE Account) |
Non-Resident Ordinary Rupee Account Scheme (NRO Account) |
| Tax on Interest Income |
Not Taxable |
Not Taxable |
TDS on Interest earned on NRO deposits to be deducted at 30.90% If the interest amount paid exceeds Rs.10 lacs, TDS will be @ 33.99% However, deduction of TDS is subject to DTAA with many countries. For further information pl. refer to IBD Circular letter no. 5920 dt. 29.05.08 |
| Operations by Power of Attorney in favour of a resident by the non-resident account holder |
Operations on the account in terms of Power of Attorney is restricted to withdrawals for permissible local payments or remittance to the account holder himself through normal banking channels. |
| Loans : a. In India: i) to the Account holder ii) to Third Parties |
Permitted up to Rs.100 lakhs Permitted upto Rs.100 lakhs |
Permitted up to Rs.100 lakhs Permitted up to Rs.100 lakhs |
Permitted Permitted |
| Particulars |
Foreign Currency (Non-Resident) Account (Banks) Scheme (FCNR(B) Account) |
Non-Resident (External)Rupee Account Scheme (NRE Account) |
Non-Resident Ordinary Rupee Account Scheme (NRO Account) |
| b. Abroad: i) to the Account holder ii) to Third Parties |
Permitted USD equivalent to Rupees 100 lakhs Permitted USD equivalent to Rupees 100 lakhs |
Permitted USD equivalent to Rupees 100 lakhs Permitted USD equivalent to Rupees 100 lakhs |
Not Permitted Not Permitted |
| $ Provided no funds are remitted to India and are used only in abroad |
| c. Foreign Currency Loans in India: i) to the Account holder ii) to Third Parties |
Permitted upto Rupees 100 lacs or its equivalent Not Permitted |
Not Permitted Not Permitted |
Not Permitted Not Permitted |
| Particulars |
Foreign Currency (Non-Resident) Account (Banks) Scheme (FCNR(B) Account) |
Non-Resident (External)Rupee Account Scheme (NRE Account) |
Non-Resident Ordinary Rupee Account Scheme (NRO Account) |
| Purpose of Loan: a. In India i) to the Account holder |
i) Personal purposes or for carrying on business activities. * ii) Direct investment in India on non-repatriation basis by way of contribution to the capital of Indian firms / companies iii) Acquisition of flat / house in India for his own residential use. (Please refer to para 9 of Sch. 2 to FEMA 5) |
i) Personal purposes or for carrying on business activities. * ii) Direct investment in India on non-repatriation basis by way of contribution to the capital of Indian firms / companies iii) Acquisition of flat / house in India for his own residential use. (Please refer to para 6(a) of Sch.1 to FEMA 5) |
Personal requirement and / or business purpose * |
| ii) to Third Party |
Fund based and / or non-fund based facilities for personal purposes or for carrying on business activities *. (Pl. refer to para 9 of Sch. 2 to FEMA 5). |
Fund based and / or non-fund based facilities for personal purposes or for carrying on business activities *. (Please refer to para 6(b) of Sch. 1 to FEMA 5) |
Personal requirement and / or business purpose * |
| b. Abroad : To the account holder and Third Party |
Fund based and / or non-fund based facilities for bonafide purposes. |
Fund based and / or non-fund based facilities for bonafide purposes. |
Not permitted. |
| Particulars |
Foreign Currency (Non-Resident) Account (Banks) Scheme (FCNR(B) Account) |
Non-Resident (External)Rupee Account Scheme (NRE Account) |
Non-Resident Ordinary Rupee Account Scheme (NRO Account) |
Interest on Loan against Deposits:
- Loan against NRO / NRE Deposits:
- Self : 2% ODR
- Third Parties : 1% above BPLR
- Loan against FCNR Deposits (Rupee) :
- Self & Third Parties : 1% below BPLR
- Foreign Currency Loan :
- Only for Self : 2% ODR or 2% over LIBOR whichever is higher.
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