Types of NRI Account

NRE A/c - Non Residential (External) Rupee Account. FCNR-B A/c - Foreign Currency Non Residential Account. NRO A/c - Non Resident Ordinary Account. RFC A/c - Resident Foreign Currency Account.

Non-Resident (External) Rupee (NRE) Accounts

Eligibility - NRI or PIO
- Maintain NRE accounts with authorized dealers and with banks (including co-operative banks) authorized by the Reserve Bank of India. - Opened by the Non Resident account holder himself. - Opening of a/c of individuals/entities of Bangladesh/Pakistan nationality/ownership requires approval of RBI.

Types of Accounts
- Savings, Current, Recurring or Fixed Deposit accounts.

Debits
Local disbursements Repatriable Investment in shares/securities/Commercial Paper of Indian Company Purchase of immovable property

Credits
Proceeds of any remittance in permitted currencies Proceeds from personal cheques, DD. Interest accruing on funds Interest and proceeds from Government securities and Mutual funds

Joint a/c not allowed with a resident.

Interest Rate
- The interest rates on fresh repatriable Non-Resident (External) Rupee (NRE) Term deposits should not exceed the LIBOR/SWAP rates.

Term Deposits For 1 year to 3 years

Nomination facility is permitted.

Taxation
- Interest Income is totally free from Income tax.

Non Resident (Ordinary) Rupee Account (NRO)

Eligibility - NRI or PIO or NR
- Individuals or entities of Bangladeshi or Pakistani nationality or ownership require approval from the RBI.

Types of Accounts - Savings, Current, Recurring or Fixed Deposit accounts. Debits

Local disbursements in Indian Rupees Remittances outside India of current income in India net of applicable taxes

Credits
Proceeds of remittances to India in any permitted currency Permitted currency tendered by the account holder during his temporary visit to India Transfer from rupees accounts Legitimate dues of the account holder in India Unlike other accounts, funds in the NRO accounts cannot be remitted abroad. They can ONLY be used for local payments, except in the following cases: The interest that is earned on the accounts and other current incomes like pensions, dividends, rents etc. that are credited to the account are repatriable, subject to producing the appropriate certificate from a Chartered Accountant.

 Funds can also be repatriated upto USD 1 million (equivalent) per year out of balance held in NRO accounts for meeting expenses. Joint a/c can be opened jointly with resident also. Interest Rates

Term Deposits

- Banks are free to determine interest rates.

Interest Income is subject to TDS.