| FREQUENTLY
ASKED QUESTIONS On Features of various Deposit Schemes available
to Non-Resident Indians (NRIs) (As
on June 1, 2008) |
| 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) |
|
(1) |
(2) |
(3) |
(4) |
|
Who can open an account |
NRIs (individuals / entities of Bangladesh/
Pakistan nationality/ownership require prior approval of RBI) |
NRIs (individuals / entities of Bangladesh / Pakistan
nationality/ownership require prior approval of RBI) |
Any person resident outside India
(other than a person resident in Nepal and Bhutan). (individuals / 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, Japanese Yen, Euro, Canadian Dollar and Australian Dollar
| Indian
Rupees | Indian
Rupees |
| Repatriable
| Repatriable
| Repatriable
| Not
repatriable except for the following in the account - 1) current income 2) up
to USD 1 million per financial year (April- March), for any bonafide purpose out
of the balances in the 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 | Savings,
Current, Recurring, Fixed Deposit |
Savings, Current, Recurring, Fixed
Deposit |
| Period
for fixed deposits | For
terms not less than 1 year and not more than 5 years. |
At the discretion of the bank |
As applicable to resident accounts.
|
| Rate
of Interest | Subject
to cap : LIBOR / SWAP rates minus 75 basis points for the respective currency
/ corresponding maturities. |
Subject to cap : Fixed
Deposits : LIBOR / SWAP rates, as on the last working
day of the previous month, for US Dollar of corresponding maturities with effect
from close of business on April 24, 2007. Savings Bank
Account Interest rate shall be at the rate applicable
to domestic savings account with effect from close of business in India on 17-11-2005. |
Banks are free to determine interest
rates for term deposits. |
|
Operations by Power of Attorney in
favour of a resident by the non-resident account holder |
Operations on the account in terms
of Power of Attorney is 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 is 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 is restricted to withdrawals for permissible local payments
or remittance to the account holder himself through normal banking channels. |
| Loans
a.
In India
i) to the Account holder
ii) to Third Parties |
Permitted
up to Rs.20 lakhs
Permitted up to Rs.20 lakhs |
Permitted
up to Rs.20 lakhs
Permitted up to Rs.20 lakhs |
Permitted
Permitted
|
| b.
Abroad
i) to the Account
holder
ii) to Third Parties |
Permitted $
Permitted $
|
Permitted $
Permitted $
|
Not Permitted
Not Permitted
|
| c.
Foreign Currency Loans in India
i) to the Account holder
ii) to
Third Parties | Permitted
up to Rs.20 lakhs
Not Permitted |
Not Permitted
Not
Permitted | Not
Permitted
Not Permitted |
|
Purpose of Loan a.
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. (Please refer to para 9 of Sch. 2 to FEMA 5) |
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. (Please refer
to para 6(a) of Sch.1 to FEMA 5) |
Personal
requirement and / or business purpose * |
|
ii) to Third Party |
Fund based and / or non-fund based
facilities for personal purposes or for carrying on business activities *. (Please
refer to para 9 of Sch. 2 to FEMA 5). |
Fund based and / or non-fund based
facilities for personal purposes or for carrying on business activities *. (Please
refer to para 6(b) of Sch. 1 to FEMA 5) |
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.
|