Public Limited Company

Deposit Schemes for NRI

Check out the Deposit Schemes for NRI.

VARIOUS DEPOSIT SCHEMES AVAILABLE TO NON-RESIDENT INDIAN's (NRI's)

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 (individual/ entities of Bangladesh/ Pakistan nationality/ ownership require prior approval of RBI)

NRIs (individual/ entities of Bangladesh/ Pakistan nationality/ ownership require prior approval of RBI)

Any person resident outside India other than a person resident Nepal and Bhutan (individual/ 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, Jap Yen, Euro, Canadian and Australian Dollar

Indian Rupees

Indian Rupees

Repatriable

Repatriable

Repatriable

Not repatriable except for the following in 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

Saving, Current, Recurring, Fixed Deposit

Saving, Current, Recurring, Fixed Deposit

Rate of interest

Subject to cap: LIBOR /SWAP rates for the respective currency/ corresponding maturities minus 25 basis points

Subject to cap: Fixed Deposits: LIBOR / SWAP rates, as on the last working day of the previous month, for US dollar of corresponding maturities plus 50 basis points with effect from close of business on January 31, 2007.
Saving Bank Account Interest rate shall be at the rate applicable to domestic savings account with effect from close of business in India on 17-1-2005.

Banks are free to determine interest rates for term deposits.

Operations by Power of Attorney in favor of a resident by the non-resident account holder

Operations on the account in terms of Power of Attorney are 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 are restricted to withdrawals for permissible local payments or remittance to the account holder himself through normal banking channels.

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Loan


A. In India

To the Account holder

Permitted upto Rs. 20 lakhs

Permitted upto Rs. 20 lakhs

Permitted

To Third Parties

Permitted upto Rs. 20 lakhs

Permitted upto Rs. 20 lakhs

Permitted


B. Abroad

To the Account holder

Permitted upto Rs. 20 lakhs

Permitted upto Rs. 20 lakhs

Not Permitted

To Third Parties

Permitted upto Rs. 20 lakhs

Permitted upto Rs. 20 lakhs

Not Permitted


C. Foreign Currency Loans in India

To the Account holder

Not Permitted

Not Permitted

Not Permitted

To Third Parties

Not Permitted

Not Permitted

Not Permitted


Purpose of Loan


A. In India

To the Account holder

i. Personal purpose or for carrying on business activities.*

i. Personal purpose or for carrying on business activities.*

*Personal requirement and/ or business purpose.*

ii. Direct investment in India on non- repatriation basis by way of contribution to the capital of Indian firms /companies.

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.

iii. Acquisition of flat /house in India for his own residential use.

To Third Parties

Fund based and / or non-fund based facilities for personal purposes or for carrying on business activities*

Fund based and / or non-fund based facilities for personal purposes or for carrying on business activities*

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

* The loans cannot be utilized for the purpose if Regulation-lending or for carrying on agriculture or plantation activities or for investment in real estate business.

    Note:

  1. 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 Rupee account. Such account should not be designated as Non-Resident (Ordinary) Account (NRO).

  2. ADs may open and maintain NRE/FCNR (B) Accounts of the person’s 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.

  3. In terms of Regulation 4(4) of the Notification No FEMA 5/2000-RB dated May 3,2000, ADs may open and maintain rupee accounts for a person resident in Nepal /Bhutan.