16.nri deposit schemes n remit faci

8/12/2019 16.Nri Deposit Schemes n Remit Faci

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COMPARATIVE FEATURES OF NRI DEPOSIT SCHEMES

Features of NRIaccounts

NON RESIDENT EXTERNAL(NRE) FOREIGN CURRENCY NON RESIDENT(BANK)-FCNR (B)

NON RESIDENT ORDINAY (NRO)

1.who can open NRI or person of Indian origin NRI or person of Indian origin NRI or person of Indian origin, ForeignNationals on their temporary visit in India

2.Currecy of account Indian Rupee AD banks in India may be permitted to acceptFCNR (B) deposits in any permittedcurrency/freely convertible

Indian Rupee

3.type of account savings, CD,TD Time deposits SB,CD,TD4.terms of deposit 1 to 10 years 1 to 5 years on par with domestic TD5.Rate of interest Fixed Deposits

Deregulated from 16/12/2011.Savings bank account: interest rate shall be at the

rate applicable to domestic savings(4%)

Subject to cap: Fixed DepositsAs per latest RBI notifications

Banks are free to determine interest ratesfor term deposits

6.whether joint a/c ispermitted

yes. Residents can be Joint Holders inNRE/FCNR Accounts on former orsurvivor basis and should be a closerelative.

Yes.Residents can be Joint Holders inNRE/FCNR Accounts on former orsurvivor basis and should be closerelative.

yes, joint account holder may be aresident or a non resident

7.Sources of credit inaccount

Inward remittances from abroad throughnormal banking channel

Inward remittances from abroadthrough normal banking channel

Inward remittances from abroad throughnormal banking channel

Transfer from another NRE/FCNR a/cheld with other branch/bank. Transferfrom NRO allowed subject to conditions.

Transfer from another NRE/FCNR a/cheld with other branch/bank.Transfer from NRO allowed subjectto conditions

Transfer from NRE/FCNR a/c to NROpermitted

Personal cheques, drafts in foreigncurrency



Travellers cheques in own name and foreigncurrency notes tendered in person while on atemporary visit to India

Travellers cheques in own name andforeign currency notes tendered in personwhile on a temporary visit to India

a) Travellers cheques in own foreign currencytendered in person while on a temporary visit toIndiab) local income- rent, interest, pension, dividend,and sale proceeds of assets held in Indiaincluding immovable property

8.Whetherrepatriable

yes, principal and interest balance in theaccount is fully repatriable

yes, principal and interest balance inthe account is fully repatriable

Not repatriable except for the following:i) current income ii) up to USD 1 (one)million per financial year (April-March), for

any bonafide purpose, out of the balancesin the account, e.g., sale proceeds of assetsin India acquired by way of purchase/inheritance / legacy inclusive of assetsacquired out of settlement subject tocertain conditions .

9. Premature closureof time deposit

No interest payable if deposit is closedbefore minimum period of one year

No interest payable if deposit is closed beforeminimum period of one year

Allowed , subject to conditions applicableto domestic deposits

10. Is interest on deposittaxable

NO NO Yes, interest on deposit is taxed at source ,

11.Nomination AvailableApplication from resident nominee for remittance offunds outside India for meeting the liabilities, if any, ofthe deceased a/c holder or for similar other purposes,should be forwarded to Regional Office of RBI

AvailableApplication from resident nominee for remittanceof funds outside India for meeting the liabilities, ifany, of the deceased a/c holder or for similarother purposes, should be forwarded to RegionalOffice of RBI

Available

12.Loans

a) in India to the A/C holderb)to third parties

PermittedPermitted

PermittedPermitted

PermittedPermitted

C) foreign currency loansin Indiai) to the accountholderii) to third parties

permittedpermitted

Permittedpermitted

Not permittedNot permitted

Purpose of loan Personal purposes or for carrying onbusiness activities

Personal purposes or for carrying onbusiness activities

Personal requirement or for carrying onbusiness activities

Direct investment in India on non repatriationbasis by way of contribution to the capital ofIndian firms/companies

Direct investment in India on nonrepatriation basis by way of contributionto the capital of Indian firms/companies.

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Repayment THROUGH FOREIGN INWARD REMITTANCETRANSFER FROM FCNR(B) Resident individuals may be granted general

permission to repay loans availed of from

banks in Rupees.

THROUGH FOREIGN INWARD REMITTANCETRANSFER FROM NRE, Resident individuals may be granted general

permission to repay loans availed of from banks inRupees.

To third party Fund based and or non fund basedfacilities for personal purposes or for

Fund based and or non fund basedfacilities for personal purposes or for


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carrying on business activities carrying on business activities15. Other matters POA cannot open the account ,

cannot deposit the FC, cannot givegifts/donations.POA is allowed tooperate a/c for all local payment,investment

Temporary over drafts up to Rs 50000 upto 2 weeks may be allowed. POA cannotopen the account ,cannot deposit thef/c,cannot give gifts/donationsPOA is allowed to operate a/c for all localpayment, investment

POA cannot open the accountcannot deposit the FC ,cannot givegifts/donations

RESIDENCT FOREIGN CURRENCY ACCOUNT (RFC)

PARTICUALRS RFC ACCOUNT RFC(DOMESTIC) ACCOUNT EEFCWHO CAN OPEN AN ACCOUNT FOR RETURNING INDIANS

NRI,PIOResidents can be Joint Holderson former or survivor basis.

RESIDENT INDIVIDUALS A PERSON RESIDENT IN INDIAWHICH INCLUDESINDIVIDUALS, FRIMS,COMPANIES.Residents can be Joint Holderson former or survivor basis

SOURCES OF FUNDS INWARD REMITTANCES, TR OFFCNR (B), NRE DEPOSITS

F E ACQUIRED WHILE ON AVISIT TO ANY PLACE OUTSIDEINDIA

CAN RETAIN UPTO 100%(subject to condition)

TYPE OF A/C SB, CA, TDany resident a/c

CURRENT CURRENT

CURRENCY PERMITTED FOREIGNCURRENCY

PERMITTED FOREIGNCURRENCY

US $, pound, euro

Loans , OD NOT PERMITTED NOT PERMITTED NOT PERMITTED

INTEREST BANK CAN DECIDE NO INTEREST NO INTEREST

End use No restriction, includingoverseas investments

Permissible current/capitalAccount transactions

For bonafide purposes

Miscellaneous RemittancesFacilities for Residents

Schedule III : for a business trip - USD 25,000 for a business trip

for medical treatment outside up to USD 100,000 or its equivalent on self declaration

for studies outside India -USD 100,000 per academic year or the estimate received whichever is higher

Private visits to a country outside India -up to USD10,000, in any one financial year

A person going abroad on employment -up-to USD100,000

A person going abroad on emigration up to USD100,000 on self- declaration.

Donations by Corporate, exceeding one per cent of their foreign exchange earnings during the previous three financial yearsor US$ 5,000,000, whichever is less.

Remittance for consultancy services Up to USD 10 million for construction projects and USD1 million Remittance beyondthis amount requires RBI prior permission

For pre incorporation expenses- USD 100000 or 5% of the investment brought into India whichever is higher.

Liberalised Remittance Scheme :

This is a facility extended to all resident individuals, minors under which, they may freelyremit up to USD 200,000 per financial year for any permissible current or capital account transaction or a combination of

both. Include remittances towards gift and donation by a resident individual.

Mandatory to have PAN number.


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Sale of Exchange-foreign currency notes and coins may be sold up to the limit indicated below.

Travelers proceeding to other than Iraq, Libya---not exceeding USD 3000 or its equivalent

Travellers proceeding to Iraq or Libya - not exceeding USD 5000 or its equivalent

Remittance applications for miscellaneous non-trade current account transactions of amount not exceeding USD 25,000,Authorised Dealers may obtain simplified Application-cum-Declaration form (Form A2)

Period of surrender of foreign exchange-foreign exchange acquired for any purpose has to be used within 180 days ofpurchase

Travelers are allowed to purchase foreign currency notes/coins only up to USD 3000. Balance amount can be taken in theform of travelers cheque or bankers draft.

Residents are free to take outside India (other than to Nepal and Bhutan) currency notes of Government of India andReserve Bank of India notes up to an amount not exceeding Rs. 7,500/ - per person

Payment in Rupees-A D may accept payment in cash up to Rs. 50,000 against sale of F E

Sale of foreign exchange exceeds the amount equivalent to Rs.50,000, the payment must be received through a crossedcheque/BC/PO with KYC guidelines compliance

16.nri deposit schemes n remit faci

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