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1 Issue No.58 October, 2014 šï ÿˆå ANDHRA BANK (ž ˆÅ ˆÅ œ ÇÅŸ (A Govt. of India Undertaking) œïš ˆÅ Ä Head Office í¾ Hyderabad AB Connect N R I A news bulletin from Andhra Bank INDEX 1. Interest Rates 2. Markets at a Glance 3. Features of various Deposit Schemes available to Non-Resident Indians (NRIs) A) INTEREST RATES ON FCNR (B) /RFC DEPOSITS (with effect from ): (These rates are subject to change from time to time as per Reserve Bank of India Guidelines) CURRENCY 1 Year & < 2 Years & 3 Years & < 4 Years & < 5 years 2 Years < 3 Years 4 Years 5 Years USD GBP EURO CAD AUD JPY CHF DKK NZD SEK B) INTEREST RATES ON FCNR (B) /RFC DEPOSITS (with effect from ): CURRENCY 1 Year & < 2 Years 2 Years & < 3 Years 3 Years & < 4 Years 4 Years & < 5 Years 5 years USD GBP EURO CAD AUD JPY CHF DKK NZD SEK

2 INTEREST RATES ON NRE TERM DEPOSITS (with effect from ): Revised Slabs/Period Revised Rate of Interest (%) p.a. Less than Rs. 1 Crore Rs.1 Crore to Rs. 10 Crores a) 1year to 2 Years b) Above2 Years - up to 3 years c) Above 3 Years - up to 10 years Representative Office, USA Representative Office, Dubai Mr. P Ramakrishna, Chief Representative New Jersey : / ID: repoffice@andhrabank.us usrepoffice@andhrabank.co.in Mr. G Srinivasa Madhu, Chief Representative Dubai : Mobile :: Fax E mail ID: dubairepoffice@andhrabank.co.in WE HAVE THREE SPECIALISED NRI BRANCHES IN THREE METROS FOR EXCLUSIVE BENEFIT OF NRIs. PLEASE AVAIL THE SERVICES OF THESE BRANCHES. CONTACT DETAILS ARE AS FOLLOWS: Specialized NRI Branch Contact Person Telephone No address MUMBAI Ms. Sunita Khadgi Ph: Mob: NEW DELHI Mr. Manish Kumar Sinha Ph: Mob: nri-mum@andhrabank.co.in bmmum1642@andhrabank.co.in bmdel1644@andhrabank.co.in HYDERABAD Mr. Balaji Ph: bmhydm1711@andhrabank.co.in Visit Our Website for details of accounts and to down load Savings (NRE) application form to open account with our Bank. USA and DUBAI customers may contact our Representative offices for any clarifications. Others may contact NRI Cell, HEAD OFFICE, HYDERABAD. Contact details are given at the end of this Bulletin. NRI Cell Andhra Bank, Head Office, Pattabhi Bhavan, Saifabad, Hyderabad Phone Nos.: / / / Extn2379 Fax No Web Site Address : Address: nricell@andhrabank.co.in 2

3 Markets at a glance FOREX Market During October, 2014 Open High Low close USD/ INR Tracking global development and equity rallies, Rupee gained marginally during the course of the Month and closed at Rs / USD when compared to last month closing position of Rs /USD. Volatility in the forex market has been confined as compared to previous month. INDEX BSE NIFTY OPEN HIGH LOW CLOSE Equity Market during October, 2014 BSE Sensex touched new high during the month of October. It clocked on 31st October. BSE Sensex witnessed rally during the month and closed higher than the opening value. Sensex gained 1184 points in the course of the month to close at Nifty also witnessed a rally to the new highs during the month of Oct It touched on 31 st October. Nifty also gained during the month and closed higher than the opening value. Nifty gained 362 points in the course of the month to close at Features of various Deposit Schemes available to Non-Resident Indians (NRIs) (Updated as on September 19, 2014) 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 Joint account NRIs (individuals / entities of Bangladesh / Pakistan nationality / ownership require prior approval of RBI) In the names of two or more non-resident individuals provided all the account s are persons of Indian nationality or origin; NRIs (individuals / entities of Bangladesh / Pakistan nationality/ownership require prior approval of RBI) In the names of two or more non-resident individuals provided all the account s are persons of Indian Any person resident outside India (other than a person resident in Nepal and Bhutan). Individuals / entities of Pakistan nationality / ownership, entities of Bangladesh 2 ownership and erstwhile Overseas Corporate Bodies 5 require prior approval of the Reserve Bank. May be held jointly with residents 3

4 Resident close relative (relative as defined in Section 6 of the Companies Act, 1956) on former or survivor basis. The resident close relative shall be eligible to operate the account as a Power of Attorney in accordance with extant instructions during the life time of the NRI/ PIO account. nationality or origin; Resident close relative (relative as defined in Section 6 of the Companies Act, 1956) on former or survivor basis. The resident close relative shall be eligible to operate the account as a Power of Attorney in accordance with extant instructions during the life time of the NRI/ PIO account. Nomination Permitted Permitted Permitted Currency in which account is denominated Any permitted currency i.e. a foreign currency which is freely convertible Indian Rupees Indian Rupees Repatriablity Repatriable Repatriable Not repatriable except for the following: Type of Account Term Deposit only Savings, Current, Recurring, Fixed Deposit Period for fixed deposits For terms not less than 1 year and not more than 5 years. Rate of Interest With effect from March 1, 2014 (i)deposits of 1 year to less than 3 year maturity, interest shall be paid within the ceiling rate of LIBOR/ SWAP rates plus 200 basis points; (ii) deposits of 3-5 years maturity, interest shall be paid within the ceiling rate of LIBOR/ SWAP rates plus 300 basis points On floating rate deposits, interest shall be paid within the ceiling of SWAP rates for the respective currency /maturity plus 200 bps/ 300 bps as the case may be. For floating rate deposits, the interest reset period shall be six months. From one to three years, However, banks are allowed to accept NRE deposits above three years from their Asset-Liability point of view With effect from March 1, 2014, interest rates offered by banks on NRE deposits cannot be higher than those offered by them on comparable domestic rupee deposits. i) all current income and ii) up to USD 1 (one) million per financial year (April-March), by A NRI/ PIO. Savings, Current, Recurring, Fixed Deposit. As applicable to resident accounts. Banks are free to determine their interest rates on savings deposits under Ordinary Non-Resident (NRO) Accounts. However, interest rates offered by banks on NRO deposits cannot be higher than those offered by them on comparable domestic rupee deposits. 4

5 Operations by Power of Attorney in favour of a resident by the non-resident account Operations in the account in terms of Power of Attorney are restricted to withdrawals for permissible local payments or remittance to the account himself through normal banking channels. Operations in the account in terms of Power of Attorney are restricted to withdrawals for permissible local payments or remittance to the account himself through normal banking channels. Operations in the account in terms of Power of Attorney is restricted to withdrawals for permissible local payments in rupees, remittance of current income to the account outside India or remittance to the account himself through normal banking channels. a. In India ii) to Third Parties b. Abroad Loans margin requirements Permitted Permitted Not Permitted Remittance to the NRI/ PIO account is subject to the ceiling of USD 1 (one) million per financial year. Permitted subject to the extant rules 3 Permitted, subject to conditions 4 ii) to Third Parties Permitted Permitted Not Permitted c. Foreign Currency Loans in India Not Permitted ii) to Third Parties margin requirements margin requirements Not Permitted Purpose of Loan a. In India i) Personal purposes or for activities * i) Personal purposes or for activities.* Personal requirement and / or business purpose.* 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 Schedule 2 to FEMA 5). 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 Schedule1 to FEMA 5). 5

6 ii) to Third Parties Fund based and / or nonfund personal purposes or for activities *. (Please refer to para 9 of Schedule 2 to FEMA 5). Fund based and / or nonfund personal purposes or for activities *. (Please refer to para 6(b) of Sch. 1 to FEMA 5) Personal requirement and / or business purpose * b. Abroad To the account and Third Parties Fund based and / or nonfund bonafide purposes. Fund based and / or nonfund bonafide purposes. Not permitted. * The loans cannot be utilized for the purpose of on-lending or for carrying on agriculture or plantation activities or for investment in real estate business. Edited by: Sri. T D Dilip Kumar Singh, Deputy General Manager, Andhra Bank, Corporate Planning Dept, Head Office. Compiled & Published by: Andhra Bank, NRI Cell, Corporate Planning Dept., Head Office, Saifabad, Hyderabad , Telangana State, India. DISCLAIMER This contains privileged information or information belonging to Andhra Bank and is intended solely for the addressee/s. Access to this by anyone else is unauthorized. Any copying (whole or partial) or further distribution beyond the original recipient is not intended and may be unlawful. The recipient acknowledges that Andhra Bank is unable to exercise control or ensure or guarantee the integrity of the contents of the information contained in transmissions and further acknowledges that any views expressed in this message are those of the individual sender and are not binding on Andhra Bank. s are susceptible to alteration and their integrity cannot be guaranteed. Andhra Bank does not accept any liability for damages caused on account of this . If you have received this in error, please contact the sender and delete the material from your computer. ***** 6