Non-resident (External) Rupee Account is opened in the form of Savings Bank / Current Account / Term Deposit / Re-investment Deposit Account. Term Deposit / Reinvestment Deposits are allowed for periods from 1 year to 3 years.
The NRE Account is opened by remittance from abroad or by transfer of funds from existing Non-resident (External) and or from Foreign Currency (Non-resident) accounts upon maturity. The said account is also opened by NRIs depositing their foreign currency notes / travellers cheques during their visit to India.
Non-resident accounts can be opened jointly or severally if all enjoy non-resident status.
Non-resident Indians can allow their resident representative to operate their Bank account, for local payments only, through a power of attorney / letter of authority.
Principal and interest of Non-resident (External) rupee account proceeds are freely repatriable in convertible currencies.
Purchase of Units from Unit Trust of India, Central, State government securities and national savings certificate made from Non-resident (External) Rupee accounts. The maturity proceeds of the above securities purchased out of Non-resident (External) Rupee account will be credited to Non-resident (External) account with Repatriation Facility.
Loans against Re-investment deposits and Term Deposits are available upto 90% of the deposit amounts inclusive of interest accrued thereon.
- FCNR Term Deposit /Re-investment accounts may be opened in designated currencies viz., US Dollar, Pound Sterling and also Euro.
- These deposits are issued out of depositor’s remittances from abroad or from transfer from the existing Non-resident (External) rupee account or out of foreign exchange brought to India during non-residents’ visit to India.
- Loans in rupee accounts against Foreign currency Non-resident deposits are available upto 85% of the deposit amount including interest accrued thereon.
- Interest will be paid in the currency of the deposit. Conversion to Indian Rupees would be at the prevailing exchange rate.
- Minimum deposit amount $1000, £1000 , €1000.
Non Resident Ordinary Rupee Account - NRO a/c
- Accounts are opened in the names of non-resident individuals / entities without approval of Reserve Bank of India for the purpose of putting through bonafide transactions in Rupees.
- This account can also be opened jointly with a resident in India.
- The local funds of an NRI viz. rent, dividend, interest, sale, proceeds of securities, properties, etc can be credited to these accounts.
- Income earned on investments done on non-repatriable basis is to be credited to NRO account.
- Loans available to depositors in Indian Rupees against NRE / NRO / FCNR / NRNR deposits.
- Interest charged only on the amount drawn.
- Interest is debited at monthly intervals.
- Repayment of the loan can be done in Foreign Currency and Indian Rupees.
- Loans can be given to third parties also on the security of NRO / NRE / FCNR / NRNR deposits.
- NRIs who are Indian passport holders.
- Persons of Indian Origin (PIOs), holding a foreign passport.
48 times the net monthly income for persons upto 45 years of age and 36 times the NMI for persons above 45 years of age. Subject to the stipulation that the aggregate repayment obligation should not exceed 50% of their NMI / NAI.
Construction / Acquisition of new house / flat / renovation / alteration /extension of existing house.
i) 20% of the total cost to be remitted from abroad or transfer from funds in NRE/FCNR/NRNR/NRO account for purchase of land meant for construction of a dwelling unit, including cost of registration, stamp duty etc.,
ii) 15% of the total cost including amenities, registration, stamp duty etc., for purchase of new or old house / flat or construction of House / flat.
iii) 20% of the cost of the project for repairs / renovation.
i) 180 months including the repayment holiday of 18 months.
ii) Repayment to begin on completion of the house or 18 months from the disbursement of first instalment of the loan, whichever is earlier.
iii) Repayment shall be through remittance from abroad or transfer from NRE/FCNR/NRO accounts.
iv) Rental income if any received should go towards repayment of loan.
v) Repayment can be from local sources after returning to India permanently.
Floating Interest Rates for housing loans have been revised with effect from 01.01.2008. There is NO CHANGE IN THE FIXED RATE OF INTEREST.
Floating Rate of Interest (with effect from 01.04.2008)
Schemes and Interest rates are subject to changes from time to time.
RFC Account (Resident Foreign Currency Account)
A non-resident Indian having stayed abroad continuously for a minimum period of one year, after his return to India on or after 18/04/92 as resident may open Resident Foreign Currency Savings Bank account or Term Deposit account (within 30 / 90 days of his / her return to India) in any of the permitted currencies from the proceeds of NRE / FCNR Accounts. These funds can be repatriated for any bonafide purposes for self and dependants. The period of deposit shall range from 91 days to 2 years and minimum deposit amount is US$ 1000 or equivalent in any of the permissible currency.
Resident Foreign Currency (Domestic) Account
Persons resident in India can open, hold and maintain Resident Foreign Currency (Domestic) Accounts with an Authorised Dealer out of foreign exchange acquired in the form of currency notes, bank notes and travellers cheques.
Type of Account
Only in non-interest bearing Current Account.
Foreign exchange acquired in the form of currency notes, bank notes and
Travellers cheques from the sources specified as under :
1. Foreign Exchange acquired by the person on a visit to any place outside India by way of payment for services not arising from any business in or anything done in India.
2. From any person not resident in India and who is on a visit to India, as honororium or gift or for services rendered or in settlement of any lawful obligation.
3. By way of honorarium or gift while on a visit to any place outside India.
4. Foreign Exchange representing the unspent amount of foreign exchange acquired by him from an authorised person for travel abroad.
The account can be maintained for:
1. Payment towards current/ capital account transactions in accordance with the existing foreign exchange regulations.
2. Payment of rupees.
Cheque Book Facility
Cheque book facility allowed in RFC (Domestic) account to customers having good track record.
Customers should furnish a letter of undertaking stating that cheques will be issued for approved purposes only and they will submit an application in Form A1/ A2 to the branch, within 7 days giving full particulars of payment made.
Currency- US Dollars
USD - 1000 for non-cheque book facility
USD - 5000 in case cheque book facility is availed
- Commission at 0.125% with a minimum of Rs.50 will be collected from the customer on the foreign curreny amount credited to RFC (Domestic) Account at the time of opening/ depositing.
- Penalty of USD 10 p.a. will be charged for non-maintenance of minimum balance.
- For accounts having cheque book facility a minimum service charges of USD 10 plus USD 10 for each cheque book of 10 leaves will be levied.
Benefits available to NRI Account holders
1. Interest earned on Non-resident (External) / Foreign Currency Non-resident / Non-resident Non-Repatriable Deposit is free from Indian income tax.
2. Funds invested in Non-resident (External) / Foreign Currency Non-resident / Non-resident Non-Repatriable Deposits are free from wealth-tax.
3. Non-resident (External), Foreign Currency Non-resident Deposits are exempt from gift-tax.
4. Non-Resident Non-Repatriable Deposit is exempted from Gift tax once only in case the beneficiary is a non-resident Indian.
5. Nomination can be made for all NRI deposits.
6. Safe Deposit Locker facility is available for non-residents also.
7. Investments in shares and debentures of Indian companies are permitted, both on repatriation and non-repatriation basis.(subject to Reserve Bank of India directives).
8. Housing Finance to NRIs to the extent of 80% of the cost of the flat / house.
9. Loan facility to meet the cost of onward passage fare by residents going abroad on employment is available.
For more particulars, please contact
International Banking Department, Head Office,
Bangalore - 560 009
Tel: 91 80 22353901 to 22353909 ; 22353473. Extn 379, 22353456
Telex: 845 - 8362
Fax: 91 80 22283684