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Features of various deposit schemes available to Non-Resident Indians (NRIs) (As on Sept. 15, 2003)

Types of Deposit Schemes

Particulars

(Foreign Currency Non-Resident Account
(FCNR A/c)

Non-Resident External Rupee Account
(NRE A/c)

(Non-Resident Ordinary Account
(NRO A/c)

Who can open an account

NRIs or OCBs

(Individuals/entities of Bangadesh/ Pakistan nationality /ownership require approval of RBI)

NRIs or OCBs

(Individuals/entities of Bangadesh/ Pakistan nationality /ownership require approval of RBI)

Any person resident outside India

(Individuals/entities of Bangadesh/ Pakistan nationality /ownership require 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 denominated

Pound Sterling, US Dollar,
Jap. Yen, or Euro.

Indian Rupees

Indian Rupees

Repatriability

Repatriable

Repatriable

Not repatriable except for the following in the account:-

  1. Current income and interest
  2. Upto US$ 1 million per calendar year for any bonafide purposes out of NRO balances/ sales proceeds of assets

Type of Account

Term Deposits only

Savings, Current, Recurring, Fixed Deposit

Savings, Current, Recurring, Fixed Deposit

Period for fixed deposits

For terms not less than 1 year and more than 3 years

No restriction

No restriction

Rate of Interest

Subject to cap:

LIBOR - 250 basis points

Subject to cap:

LIBOR/SWAP+ 100 basis points

Banks are free to determine interest rates.

LOANS & OVERDRAFTS

  1. IN INDIA

(i) to the Account holder

Permitted

Permitted

Permitted

(ii) to third parties

Permitted

Permitted

Permitted

b) OUTSIDE INDIA

   

(i) to the Account holder

Permitted

Permitted

Not Permitted

(ii) to third parties

Permitted

Permitted

Not Permitted

b. FOREIGN CURRENCY LOANS IN INDIA

(i) to the Account holder

Permitted

Not Permitted

Not Permitted

(ii) to third parties

Not Permitted

Not Permitted

Not Permitted

PURPOSE OF LOAN

  1. 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

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

Personal requirement and /or business purpose. *

In India
(ii) to third party

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) OUTSIDE INDIA

To the Account holder and to 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 of relending, or carrying on agriculture or plantation activities or for investment in real estate business.

 

Features of various foreign currency deposit schemes available to Resident Indians

Particulars

Resident Foreign Currency Account (RFC Account)

Resident Foreign Currency (Domestic ) Account (RFC(D) Account)

Exchange Earner’s Foreign Currency Account(EEFC Account)

Who can open an account

Any person resident in India.

Resident Individuals

Any person resident in India

Sources of Funds

  1. Foreign exchange received as pension/ superannuation /other benefits from employer abroad
  2. Reaslisation of assets held abroad
  3. Foreign exchange acquired as gift or inheritance from person who was NRI

Foreign exchange acquired :

  1. while on a visit abroad
  2. from any person on visit to India or honorarium or gift or for services or settlement of any lawful obligation
  3. by way of honorarium or gift while on a visit abroad
  4. representing unspent foreign exchange acquired during travel abroad
  5. as gift from a close relative
  6. by way of earning through export of goods/services or as royalty honorarium or by any other lawful means.
  7. representing the disinvestment proceeds received by the resident a/c holder on conversion of shares held by him to ADRs/GDRs under the sponsored ADR/GDR scheme approved by the FIPB of Govt. of India.

A 100% Export Oriented Unit or a unit in (a) Export processing zone or (b) Sortware technology park or (c)Electronic hardware technology park may credit upto 100% and any other person resident may credit upto 50% of their foreign exchange earnings.

(d) Professional like scientists, professors of Indian Universities, economists, lawyers, doctors, artists, architects, engineers, consultants, Cost/ Chartered Accountants, Directors of Boards of overseas companies etc. who render services in their individual capacities outside India, may credit upto 100% of their earnings.

Joint account of two or more residents

Not permitted

Not permitted

Not permitted

Joint account with NRI

Not permitted

Not permitted

Not permitted

Types of account

Savings
Current
Fixed Deposit

Current Account

Current Account

Period for fixed deposits

Like any resident accounts banks may fix the period

N.A.

N.A.

Rate of interest

The banks are free to determine interest rates.

No interest is payable

No interest is payable.

End Use

No restrictions, including investments overseas

For permissible current and capital account transactions

For bonafide purposes as per Notification No. FEMA 10/2000-RB dt. 3.5.2000

LOANS & OVERDRAFTS
In India

Foreign currency loans permitted

Not permitted

Not permitted

 
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