NRI FAQs

What are all the deposits facility available to persons resident outside India?
- We (authorized dealer in foreign exchange) accept deposits.
Non-Resident (External) Account scheme (NRE Account) from a non-resident Indian.
- Foreign Currency (Non-Resident) Banks Scheme (FCNR (B) Account) from a non-resident Indian.
- Non-Resident (Ordinary) Account Scheme (NRO Account) from any person resident outside India.
What are all the type of accounts, a Non-Resident Indian (NRI) can open?
- NRE Accounts may be maintained in the form of Savings Bank, Recurring Deposit or Fixed Deposit accounts.
- FCNR(B) Accounts may be opened only in the form of Term Deposits for the maturity periods from 1 year to 5 years.
- NRO Accounts may be maintained in the form of Current, Savings, Recurring or Fixed deposit accounts.
Can the accounts be opened Jointly?
- NRE & FCNR(B): The accounts may be held jointly with one or more NRIs or with resident close relative on 'former or survivor' basis. A resident close relative shall be eligible to operate the account as a PA holder.
- NRO: The accounts may be held jointly with residents.
Is nomination facility available to the above accounts?
- Yes. In the name of a single person.
Can operations by Power of Attorney on Non- Resident Accounts acceptable?
- Power of Attorney or other ‘authority’ granted in favour of a resident by non-resident account holder may operate the accounts only for the following purposes:
  - Withdrawals for local payment.
  - Investment in India with specific authority in the Power of Attorney.
  - Repatriation of funds to the account holder himself.
Can fixed deposits be closed prematurely?
- NRE & FCNR fixed deposits with the bank can be closed prematurely. No interest is payable if the deposit is not kept with the bank for a minimum period of one year. Effective from 1st June 2022,penalty for premature withdrawal of Retail Term Deposits (including NRE & Recurring Deposits) will be applicable at the rate of 0.50% for deposit amounts below Rs. 5 lakhs and 1% for deposit amounts of Rs. 5 lakhs and above.The new change in penalty is applicable for all term deposits opened or renewed w.e.f. 1st June 2022.
Are funds in NRE / FCNR accounts re-patriable?
- All amounts in the various NRE / FCNR deposits accounts are fully repatriable.
On return to India, can the NRI retain his assets abroad?
- Yes, on return to India, NRI need not declare or surrender their foreign currency assets and the income earned thereon.
Can NRIs hold funds acquired overseas in foreign currency account in India?
- Yes. They can be held in RFC (Resident Foreign Currency) Accounts.
What amounts can be credited to RFC A/c?
- Sale / maturity proceeds of assets held abroad & income on them.
- Pension received abroad.
- Currency notes / TCs brought into India at the time of returning to India.
- Balances in FCNR / NRE a/cs.
Can a person who returns to India after a short assignment abroad open an RFC a/c?
- Yes.
Can the funds in RFC accounts be used for making local payments?
- Yes.
Can a returning Indian on going abroad again transfer his funds from RFC to FCNR (B) / NRI a/cs?
- Yes.
Is the amount in RFC accounts fully repatriable?
- Yes. For the permissible purposes.
Can RFC accounts be opened jointly with any resident or NRI?
- No.
For how many years can an RFC accounts be held?
- RFC accounts can be held for any number of years.
Is interest income on RFC deposits taxable?
- Interest income on RFC deposits is taxable and exemption is available for returning Indians, subject to IT regulations.
Can an NRI repatriate rent received from his house/flat in India?
- Yes.
On change of a person’s status from Resident to NRI, can the existing regular savings account (resident account) be continue to operate?
- NRIs are not allowed to operate a regular savings account in India. Hence as soon as the resident status changes as NRI, the existing resident account (if any) need to be converted as NRO account. Not doing so can attract legal and financial penalties. As per FEMA guidelines for NRIs, it is illegal for them to hold resident saving accounts, and doing so can attract penalties. In case if an NRI found to be holding a resident savings account after becoming NRI, you may have to pay a fine up to three times of the amount in the savings account or Rs.2.00 lakhs( if the amount is not quantifiable) Additionally, a penalty of Rs.5000/- per day from the first day of intervention.

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