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NRI  NRI Deposits  Features of NRI deposits   NRE & NRO features in tabular form
Link to: Union Smart Rupee Deposit
NRE & NRO features in tabular form
Features
In Brief: FEATURES OF VARIOUS DEPOSIT SCHEMES AVAILABLE TO NON-RESIDENT INDIANS (NRIs) AT A GLANCE
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:
  1. Loan against NRO / NRE Deposits:
    1. Self                           :   2% ODR
    2. Third Parties            :  1% above BPLR
  2. Loan against FCNR Deposits (Rupee) :
    1. Self & Third Parties :  1% below BPLR
  3. Foreign Currency Loan :
    1. Only for Self             :  2% ODR or 2% over LIBOR whichever is higher.
 

* The loans cannot be utilised for the purpose of re-lending or for carrying on agriculture or plantation activities or for investment in real estate business.

Note:

a. When a person resident in India leaves India for Nepal and Bhutan for taking up employment or for carrying on business or vocation or for any other purpose indicating his intention to stay in Nepal and Bhutan for an uncertain period, his existing account will continue as a resident account. Such account should not be designated as Non-resident (Ordinary) Rupee Account (NRO).

b. Banks may open and maintain NRE / FCNR (B) Accounts of persons resident in Nepal and Bhutan who are citizens of India or of Indian origin, provided the funds for opening these accounts are remitted in free foreign exchange, Interest earned in NRE / FCNR (B) accounts can be remitted only in Indian rupees to NRIs and PIO resident in Nepal and Bhutan.

c. In terms of Regulation 4(4) of the Notification No.FEMA.5/2000-RB dated May 3, 2000, Banks may open and maintain Rupee accounts for a person resident in Nepal / Bhutan.

d.   The regulations relating to the various deposit schemes available to Non Resident Indians have been notified vide Notification no. FEMA.5 dated 03rd May, 2000, as amended from time to time. The relevant notification and A P (DIR Series) Circulars are available in RBI website www.rbi.org.in and may please be referred to for full details.

I have been a customer of Union Bank of India, NRI Branch at Mumbai since the last 15 years. It is a matter of great satisfaction to me that UBI managers and staff are the most friendly and they have almost always exceeded our expectations.
Link To: Union e-Remit
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