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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/PIOs/OCIs (individuals / entities of Bangladesh/ Pakistan Nationality/ownership require prior approval of RBI)
NRIs/PIOs/OCIs (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. With a resident close relative on 'former or survivor basis'.
In the names of two or more non-resident individuals.With a resident close relative on 'former or survivor basis'
Nomination
Permitted
Currency in which account is denominated
Pound Sterling, US Dollar, Jap. Yen, Euro, Canadian Dollar and Australian Dollar.
Indian Rupees
Repatriability
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.
Type of Account
Term Deposit only
Savings, Current, Recurring, Fixed Deposit
Period for fixed deposits
For terms not less than 1 year and not more than 5 years.
Term Deposit-Min 1 yr. Max 10 yrs.
As applicable to resident accounts.
Rate of Interest :
Banks are free to determine interest rates for FCNR(B) Deposits.
Banks are free to determine interest rates for NRE Term Deposits.
Banks are free to determine interest rates for term deposits.
Tax on Interest Income
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.
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
Without any monetary ceiling on the loan amount subject to usual margin requirements.
Permitted Permitted
b. Abroad: i) to the Account holder ii) to Third Parties
Without any monetary ceiling on the loan amount subject to usual margin requirements. Not permitted
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 Not Permitted
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)
b. Abroad : To the account holder and Third Party
Fund based and / or non-fund based facilities for bonafide purposes.
Not permitted.
* 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.