NRI Banking

I) FOREIGN CURRENCY (NON-RESIDENT) ACCOUNTS

Foreign Currency (Non-Resident) (FCNR) accounts may be opened by individuals of Indian
descent and non-resident Indians. FCNR accounts are opened only designated branches. In the
following currencies, accounts may be opened as Term Deposits:
 US DOLLAR (USD)
 GREAT BRITAIN POUND (GBP)
 EURO (EUR)
 JAPANESE YEN (JPY)
 CANADIAN DOLLAR (CAD)
 AUSTRALIAN DOLLAR (AUD)
The deposit period will extend from 1 year to 5 years. The interest will be paid on maturity, in
the same deposit currency. For tenure deposits of up to one-year, basic interest will be charged
and for tenure deposits of up to one year, the interest will be multiplied to half the annual
balance. Including interest, the maturity proceeds are entirely purchasable.
Minimum amount of deposit shall be:
 USD 1000 EUR 1000 GBP 1000
 CAD 1000 AUD 1000 JPY 100000
Premature closure would be tolerated. Nevertheless, the interest charged in such situations would
be one percent lower than the amount applicable for the term of the deposit. No interest on a
deposit is permitted if it is closed prematurely before one year of completion. For premature
closing of large deposits, swap charges would be imposed. For purposes other than Indian
rupees, loans against such deposits can be used for up to 75% of the deposit amount and
accumulated interest, or for Indian rupees 20,00,000 (whichever is lower) for purposes other than
savings.
II) NON-RESIDENT EXTERNAL (NRE) ACCOUNTS
 Indian rupee denominated accounts are NRE accounts that can be held as deposits,
current or term deposit.
 Accounts may be maintained with other NRI/PIO independently or jointly.
 Credits to NRE accounts may be in approved currencies by way of remittance from
abroad or transfer from other NRE/FCNR accounts.
 Completely repatriable is the whole balance in the account.
 Loan facility for the security of NRE Term deposits.
 Interest revenue is excluded from income tax.
 Subject to conditions, premature closure of the deposit is required.
 Account operation approved by duly executed attorney power or mandate for local
payments.
  Open nomination facility. The nominee could be an Indian national.
FORWARD COVER:
It is a feature commonly used by Indian residents who engage in commodity exports and
imports. This makes it possible for them to be aware of the risks involved in commercial
transactions. RBI guidelines, however, have allowed this service to be expanded to NRIs. This
allows them to balance their FCNRn/NRE accounts' credits and debits.
III) NON-RESIDENT ORDINARY(NRO) ACCOUNT
 NRIs and PIOs may maintain NRO accounts for bonafide local banking transactions
denominated in Rupees, without regard to the provisions of FEMA and the rules and
regulations contained therein.
 (Note: Opening of accounts by Bangladeshi/Pakistani nationality/ownership entities
needs prior approval by the Reserve Bank of India)
 The current account in India will be designated as an NRO account when a resident
Indian becomes a non-resident.
 The accounts may be in the form of deposits in investments, current or word.
 It can have a joint account with another NRI(s)/PIO or close resident relative.
 The account holder's remittances from abroad and valid dues in India can be attributed to
the account.
 Money from interest is subject to income tax.
The following debits in the account are allowed:
 All local payments in rupees, including payments for investment in India, subject to
compliance by the Reserve Bank with the applicable regulations.
 Remittance of current income, such as rent, dividend, pension, interest, etc., in India to
the account holder outside India.
 Remittance of up to USD 1 million per financial year (April-March), to the satisfaction of
the bank, for all bonafide purposes.
FOREX:
Treasury (international) for all its foreign exchange transactions addresses the needs of exporters,
importers and non-resident Indians. An exclusive NRI cell complies with the conditions of the
right of NRIs to open their account to control their payment and, if any, their needs.
The remittance to India from the Gulf has been eased out with the tie up of more than 15
exchange houses.
E-cash home-A product for US residents for electronic call transfers of funds to India
Lock box- A commodity for US residents for the transfer of funds by depositing payable cheques
in the USA.
 UNIT. CURRENCY SELLING RATE BUYING RATE

TT BILLS TT BILLS

1 USD 74.16 74.2 73.72 73.68

1 EUR 90.85 90.9 89.94 89.9
1 GBP 99.54 99.59 98.55 98.5
1 CAD 57.72 57.75 57.09 57.06
1 CHF 83.83 83.87 82.91 82.87
100 JPY 71.83 71.87 71.05 71.01
1 HKD 9.58 9.58 9.48 9.48
1 SGD 55.64 55.67 55.03 55
1 AUD 56.22 56.25 55.6 55.57
1 DKK 12.2 12.21 12.07 12.06
1 NOK 8.59 8.59 8.5 8.5
1 SEK 9 9 8.9 8.9
1 NZD 52.43 52.46 51.85 51.82

IV - RESIDENT FOREIGN CURRENCY (RFC) ACCOUNT

A Non-resident Indian who has returned home for permanent settlement will retain a Resident
Foreign Currency account in India after remaining abroad for a minimum duration of one year. It
is possible to open an RFC account without any regulatory approval from the Reserve Bank of
India. RFC accounts can be held in the form of Savings / Term Deposit in
USD/EUR/GBP/JPY/AUD/CAD.
Account credits can be rendered using any of the following means:
Balances to the credit of the accounts of NRE and FCNR at the time of return. Overseas asset
profits or sales revenues from overseas properties. Complete amount of pension earned from
overseas. For bonafide reasons, the balance in the account may be transferred abroad either to
yourself or to your dependents. You will move your funds to the NRE/FCNR accounts if you
wish to go abroad again
 Profit gained on an RFC account is taxable.

NRI HOME LOAN SCHEME LOAN SHEME

 For the purchase/building of residential buildings in India or the renovation/repair of
existing houses
  Eligibility a) Up to 80% of building or procurement costs - Up to INR 500 lacs b) Up to
INR 5 lacs for repair and renovation c) The applicant's minimum monthly income should
be INR 10000 lacs.
 Repayment cycle - Limit of 180 Equated Monthly Installments (EMIs) for
building/buying and 60 EMIS for repair/refurbishment.
 If the property is leased out, all rental profits should be paid to the loan account.
 Repayment by near relative approved in India o Holiday repayment period 6 months for
acquisition, 12 months for construction and 3 months for repair/refurbishment
 Property mortgage as protection
 Applicable transaction fee
NRI REMITTANCES:
You have several options with the Indian Overseas Bank to transfer money to India. We process
SWIFT remittances (also referred to as wire transfer)/web-based remittances/Electronic Fund
Transfers/Drafts and Personal Search.
SWIFT is the simplest and cheapest way to move money from abroad to India. It is a direct trade,
bank-to-bank. With the request for remittance, the transmitter must contact his banker in his
country. The remitting bank shall then submit the payment instruction (SWIFT MT 103) to the
IOB for payment to the beneficiary. The instruction shall be processed, and the funds made
available to the intended recipient.
Information that should be given to the remitting bank:
1. Name of beneficiary and account amount
2. Bank and name of the branch in India where the account is maintained
PROCEDURE FOR REMITTANCES:
You have several options with the Indian Overseas Bank to transfer money to India. We process
Fast (also known as wire transfer) remittances / web-based remittances / Electronic Fund
Transfers / Drafts and Personal Checks.
 SWIFT is the shortest and easiest way to move money from abroad to India. It is a direct
trade, bank-to-bank. With the request for remittance, the transmitter must contact his
banker in his country.
 The remitting bank shall then submit the payment instruction (SWIFT MT 103) to the
IOB for payment to the beneficiary. The instruction shall be processed, and the funds
made available to the intended recipient.
 Information that should be given to the remitting bank.
 Name of the beneficiary and fifteen-digit account number, name of the bank and branch
in India where the account is held. For Savings Bank Accounts, please ask the remitting
bank to send the SWIFT message to the correct SWIFT code, SWIFT CODE:
IOBAINBB001.