NRE Rupee Accounts (Savings Bank & Current Accounts)

NRE Rupee Accounts (Savings Bank & Current Accounts)

Non-Resident External Savings and Current accounts enable Indians who are resident abroad to transfer funds and perform other banking activities even while not in India. The main advantage of an NRE account is that interest earned and deposit amounts are both exempt from tax.

Benefits and Features
  • Funds held in NRE accounts can be repatriated abroad easily and conveniently.
  • Nominations in favour of the NRI, PIO or a Resident Indian are allowed for all NRE accounts.
  • The interest earned on NRE deposits is exempt from income tax and the NRE deposit amount is exempt from wealth tax.
  • If deposits mature on Sundays, holidays or non-business working days, the interest at the originally contracted rate of interest shall be paid for the intervening days i.e. from the due date to the actual date of payment.
  • Addition of names to the account is permitted subject to their otherwise qualifying to open joint NRE or FCNR accounts and the deposit does not undergo any change in its other terms as originally fixed.
  • Deletion of names is permitted, provided all the depositors agree in writing and at least one of the depositor’s names is continued.
  • NRE accounts can now be held jointly with resident close relatives in India on a “Former or Survivor” basis. The resident close relative can operate the account as a Power of Attorney holder also.

Permitted Credits:

  • Proceeds of remittances to India in any permitted currency.
  • Proceeds of personal cheques drawn by the account holder on his foreign currency accounts, traveller’s cheques, bank drafts deposited by the account holder in person during his temporary visit to India.
  • The traveller's cheques (issued outside India) or bank drafts provided they are standing or endorsed in the name of the account holder.
  • Proceeds of foreign currency or bank notes tendered by the account holder during his temporary visit to India and should be supported by Currency Declaration Form wherever applicable.
  • Transfers from other NRE/ FCNR accounts.
  • Interest accruing on the funds held in the account.
  • Interest on Government securities and dividend on units of mutual funds, provided the securities or units were purchased by debit to the account holder's NRE/ FCNR account or out of inward remittance through normal banking channels.
  • Maturity proceeds of Government securities provided they were originally purchased by debit to the account holders NRE/FCNR account or out of remittances received from outside India in free foreign exchange.
  • Refund of share or debenture subscriptions to new issues of Indian companies or portions thereof, if the amount of subscription was paid from the same account or from other NRE/FCNR accounts of the account holder or by remittance from outside India through normal banking channels.
  • Refund of application, earnest money or purchase considerations made by the house building agencies or seller on account of non-allotment of flat, plot, cancellation of bookings, deals for purchase of residential or commercial property, together with interest if any (net of income tax payable thereon), provided the original payment was made out NRE/FCNR account of the account holder or remittance from outside India through normal banking channels.

Permitted Debits:

  • Local disbursements.
  • Remittances outside India.
  • Transfer to NRE/FCNR account of the account holder or any other person eligible to maintain such account.
  • Investment in shares, securities or commercial paper of an Indian company or for purchase of immovable property in India provided such investments, purchase deals covered by the regulations made, or general or special permission is granted by the Reserve Bank.

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Documents Required
  • Copies of Passport/ Visa / Green Card
  • Photographs of the each of the account holder (one each to be affixed in account opening form)
  • Overseas and local addresses with contact Phone/Fax numbers, e-mail address etc.
  • Specimen signature of the applicants to be verified by the Indian Embassy/Consulate/ overseas Bank or Notary Public on the application form or on a separate paper and such documents should be sent along with account opening form.
  • Initial remittance

Detailed instructions are available in the application itself. NRIs are requested to go through the same and furnish all relevant details without any omission and forward the application, with the required documents, to the concerned branch of KVB to enable the account to be opened.

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