VARIOUS DEPOSIT SCHEMES AVAILABLE TO NON-RESIDENT INDIANS (NRIs) 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 Nomination Currency in which account is denominated NRI/PIO Individuals Individual/Entities of Pakistan and Bangladesh shall requires prior approval of the Reserve Bank of India In the names of two or more (Maximum four individuals) non-resident individuals provided all the account holders are persons of Indian nationality or origin; Account can be opened with resident relative (relative as defined in Companies Act, 2013) on former or survivor basis. The resident relative shall be eligible to operate the account as a Power of Attorney holder in accordance with extant instructions during the life time of the NRI/ PIO account holder. NRI/PIO Individuals Individual/Entities of Pakistan and Bangladesh shall requires prior approval of the Reserve Bank of India In the names of two or more (Maximum four individuals) nonresident individuals provided all the account holders are persons of Indian nationality or origin; Account can be opened with resident relative (relative as defined in Companies Act, 2013) on former or survivor basis. The resident relative shall be eligible to operate the account as a Power of Attorney holder in accordance with extant instructions during the life time of the NRI/ PIO account holder. Permitted Permitted Permitted USD, GBP, EUR, CAD & AUD Indian Rupees only Any person resident outside India (other than a person resident in Nepal and Bhutan). Individuals/ entities of Pakistan nationality/ origin and entities of Bangladesh origin require the prior approval of the Reserve Bank of India. An NRO account can be opened jointly with residents on former or survivor basis. NRIs and/or PIOs may hold NRO accounts jointly with other NRIs and/or PIOs. Indian Rupees only
Repatriablity Type of Account Minimum Period for Fixed Deposit Maximum Period for Fixed Deposit Rate of Interest Before Maturity Closure Repatriable Repatriable Not repatriable except for the following: i) all current income and ii) up to USD 1 (one) million per financial year (April-March), by a NRI/ PIO subject to submission of FEMA Declaration and 15CA and 15CB. Term Deposit only (Both Simple & Compound Interest) (Simple Interest) 1 year (FDR) (Compound Interest) (KDR) 1 year 1 day. 5 years Subject to RBI guidelines: Before maturity closure of Term deposit is permitted subject to imposing 1% penal cut. If closed before completion of 1 year, no interest shall be paid for the period run. Savings, Current, Recurring, Fixed Deposit (Both Simple & Compound Interest) (Simple Interest) 1 year (FDR) (Compound Interest) (KDR) 1 year. RD 1 year. Fixed Deposit/ Recurring Deposit accounts 10 Years A penalty of 1.00% shall be levied for premature closure / NRE term deposit of less than Rs.1 crore that are accepted /renewed on or after 29.12.2011. Penalty of 1% is waived in case of premature closure/ NRE Callable term Savings, Current, Fixed Deposit (Both Simple & Compound Interest) 15 days (7 days for single deposit of Rs.5 lakhs & above) KDR 5 months Fixed Deposit accounts 10 Years In tune with the domestic interest rates. A penalty of 1.00% shall be levied for premature closure/part withdrawal/ Domestic/NRO term deposits of less than Rs.1 crore that are accepted /renewed on or after 04.02.2011. Penalty of 1% is waived in case of premature closure/ part withdrawal/
deposits of Rs. 1 Crore & above that are accepted/ renewed on or after 13.10.2012. Domestic/NRO Callable term deposits of Rs. 1 Crore & above that are accepted/renewed on or after 13.10.2012. Operations by Power of Attorney in favour of a resident by the non-resident account holder Income Tax/ Wealth Tax Tax Deducted at Source (TDS) Loans a. In India Operations in the account in terms of Power of Attorney are restricted to withdrawals for permissible local payments or remittance to the account holder 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 holder 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 holder outside India or remittance to the account holder himself through normal banking channels. Remittance to the NRI/ PIO account holder is subject to the ceiling of USD 1 (one) million per financial year. Letter of Authority/Power of Attorney Holder shall not gift or transfer funds to another NRE/NRO accounts. Exempted Exempted Applicable Not Applicable Not Applicable Applicable for all types of accounts including SB. If NRI Customer wishes to avail reduced rate of TDS as per Double Taxation Avoidance Agreement submission of copy of Pan Card and Tax Residency Certificate is compulsory. Permitted subject to the usual margin requirements stipulated by Bank.
b. Abroad Permitted subject to conditions. Account holder c. Foreign Currency Loans in India Purpose of Loan a. In India i) Personal purposes or for carrying on business i) Personal purposes or for carrying on business 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 ii) Direct investment in India on nonrepatriation basis by way of contribution to the capital of Indian firms / companies. iii) Acquisition of flat / house in India for his own residential use. Fund based and / or nonfund based facilities for personal purposes or for carrying on business iii) Acquisition of flat / house in India for his own residential use. Fund based and / or non-fund based facilities for personal purposes or for Personal requirement and / or business purpose. (*)
b. Abroad carrying on business (*) The loans cannot be utilised for the purpose of on-lending or for carrying on agriculture or plantation activities or for investment in real estate business. To the account holder and Third Fund based and / or nonfund based facilities for bonafide purposes. Fund based and / or non-fund based facilities for bonafide purposes. Not permitted.