|
FREQUENTLY
ASKED QUESTIONS On
Features
of various Deposit Schemes available to Non-Resident Indians (NRIs)
(As
on June 1, 2008)
|
|
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)
|
|
(1)
|
(2)
|
(3)
|
(4)
|
|
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, Japanese Yen, Euro, Canadian Dollar and
Australian Dollar
|
Indian
Rupees
|
Indian
Rupees
|
|
Repatriable
|
Repatriable
|
Repatriable
|
Not
repatriable except for the following in the account - 1)
current income 2) up to USD 1 million per financial year
(April- March), for any bonafide purpose out of the balances
in the 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
|
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 minus 75 basis points for the respective currency
/ corresponding maturities.
|
Subject
to cap :
Fixed
Deposits
:
LIBOR
/ SWAP rates, as on the last working day of the previous
month, for US Dollar of corresponding maturities with effect
from close of business on April 24, 2007.
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.
|
|
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.
|
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.
|
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.20 lakhs
Permitted up to Rs.20 lakhs
|
Permitted
up to Rs.20 lakhs
Permitted up to Rs.20 lakhs
|
Permitted
Permitted
|
|
b.
Abroad
i) to the Account
holder
ii) to Third Parties
|
Permitted $
Permitted $
|
Permitted $
Permitted $
|
Not Permitted
Not Permitted
|
|
c.
Foreign Currency Loans in India
i) to the Account holder
ii) to Third Parties
|
Permitted
up to Rs.20 lakhs
Not Permitted
|
Not
Permitted
Not Permitted
|
Not
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 *. (Please 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.
|
