Bank Accounts
Facilities available to Non-Resident Indians
1. What are the types of accounts that can be opened by NRIs?
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NRIs can open NRE SB, NRE Current account, NRE Term Deposits and Term deposits in Foreign Currency. NRE SB, CA and Term Deposits are maintained in rupees.
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NRO accounts - SB, CA and Term deposits in rupees.
2. How and where does the NRI can open an account?
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The NRI accounts (NRE / FCNR / NRO) can be opened in any of our bank branches across India.
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In order to open an account, the Account Opening Form duly filled in may be sent to a branch of your choice in India. To know a branch located in your city in India, please go to “Contact Us” on the bottom right corner of the home page of the bank’s website.
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The account opening form can be downloaded from our website and ensure to comply with the instructions contained therein to fill up the form correctly.
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It is advisable to ask the branch in India to open a ‘zero balance’ account and on receipt of account number, fund the account by remittance through banking channel.
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While NRE accounts are to be opened with proceeds of foreign currency funds sent from abroad, NRO accounts can be opened with local funds i.e. INR.
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Please note the following:
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Attach 2 photographs (one signed and affixed on the form).
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Enclose copy of passport attested by an authorized officer of the Indian Embassy / Consulate or a Notary Public.
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Enclose a copy of the current Visa or green card.
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3. What are the permitted credits to NRE accounts?
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Proceeds of remittances to India in any permitted currency.
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Proceeds of personal cheques drawn by the account holder on his foreign currency accounts, travelers cheques, bank drafts deposited by the account holder in person during his temporary visit to India.
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The travelers cheques (issued outside India) / bank drafts should be standing / endorsed in the name of the account holder.
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Proceeds of foreign currency / bank notes tendered by the account holder during his temporary visit to India and should be supported by Currency Declaration Form wherever applicable.
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Transfers from other NRE / FCNR accounts.
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Interest accruing on the funds held in the account.
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Interest on Government securities and dividend on units of mutual funds, provided the securities / units were purchased by debit to the account holder’s NRE / FCNR account or out of inward remittance through normal banking channels.
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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.
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Refund of share / debenture subscriptions to new issues of Indian companies or portion thereof, if the amount of subscription was paid from the same account or from other NRE / FCNR account of the account holder or by remittance from outside India through normal banking channels.
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Refund of application / earnest money / purchase consideration made by the house building agencies / seller on account of non-allotment of flat / plot / cancellation of bookings / deals for purchase of residential / 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.
4. What are the permitted debits to NRE accounts?
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Local disbursements.
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Remittances outside India.
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Transfer to NRE / FCNR account of the account holder or any other person eligible to maintain such account.
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Investment in shares / securities / commercial paper of an Indian company or for purchase of immovable property in India provided such investment / purchase deals covered by the regulations made, or the general / special permission granted by the Reserve Bank.
5. Can funds in NRE accounts be repatriated outside India?
Yes. Funds held in NRE accounts can be repatriated abroad freely.
6. Can NRE accounts be opened jointly with Indian Residents?
NRE accounts can now be held jointly with resident close relatives on a “Former or survivor” basis and the resident can operate the account through a power of attorney.
7. Whether Nomination is permitted in NRE Accounts?
Nomination in favor of NRI/PIO/ or a Resident Indian is allowed in all NRE accounts.
8. Whether any tax concessions are available to NRIs?
The interest earned on the NRE deposits is exempt from Income Tax and the deposit amount is exempt from wealth tax. However interest earned on NRO deposits is taxable under Indian Taxation laws.
9. Whether interest is payable on NRE deposits maturing on Sundays/ holidays/ Non-business working days?
In case of deposits maturing on the above days, 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.
10. Whether addition / deletion of names in the accounts are permitted?
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Addition of names to the account is permitted subject to the qualification of the person to open a joint NRE or FCNR account. The deposit does not undergo any change in its other terms fixed originally.
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Deletion of names is permitted provided all the depositors agree in writing and at least one of the depositors name is continued.
