Page 4 - Mega Digi Page: General Awareness - Jan 2016
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www.bankersguru.org
(General Awareness)
NRI ACCOUNTS
If a person is NRI or PIO, she/ he can, without the permission from the Reserve Bank, open, hold and
maintain the different types of accounts given below with an Authorised Dealer in India, i.e. a bank
authorised to deal in foreign exchange.
NRO Savings accounts can also be maintained with the Post Offices in India.
Non-Resident Ordinary Rupee Account (NRO Account)
€ Any person resident outside India may open NRO account with an authorised dealer or an
authorised bank for the purpose of depositing amount in rupees.
€ Opening of accounts by individual/ entities of Pakistan and entities of Bangladesh require prior
approval of Reserve Bank of India.
€ Maintained in Savings, Current and Fixed deposits and denominated in Indian rupees.
€ NRI/PIO may transfer/remit from the balances held in NRO account an amount not exceeding USD
one million per financial year
€ The accounts may be held jointly with residents and / or with non-resident Indian.
€ The NRO account holder may opt for nomination facility.
€ NRO (current/savings) account can also be opened by a foreign national of non-Indian origin
visiting India which can be read under "Accounts opened by Foreign Nationals and Foreign
Tourists”.
Non-Resident (External) Rupee Account (NRE Account)
€ NRE account may be in the form of savings, current, recurring or fixed deposit accounts (with
maturity of minimum one year).
€ Such accounts can be opened only by the NRI.
€ Account will be maintained in Indian Rupees.
€ Balances held in the NRE account are freely Repatriable.
€ Repatriable -Refers to the ability of an asset to be moved from a foreign country back to an
investor's home country.
€ Interest income and balances held in NRE accounts are exempt from Income tax.
Foreign Currency Non Resident (Bank) Account – FCNR (B) Account
€ NRIs are eligible to open and maintain these accounts.
€ FCNR (B) accounts are only in the form of term deposits of 1 to 5 years.
€ Account can be held in any freely convertible currency.
€ Loans can be extended against security of funds held in FCNR (B) deposit either to the depositors
or third parties without any ceiling.
Date of Release - 07-Jan-16 SUBJECT: GA www.bankersguru.org
(General Awareness)
NRI ACCOUNTS
If a person is NRI or PIO, she/ he can, without the permission from the Reserve Bank, open, hold and
maintain the different types of accounts given below with an Authorised Dealer in India, i.e. a bank
authorised to deal in foreign exchange.
NRO Savings accounts can also be maintained with the Post Offices in India.
Non-Resident Ordinary Rupee Account (NRO Account)
€ Any person resident outside India may open NRO account with an authorised dealer or an
authorised bank for the purpose of depositing amount in rupees.
€ Opening of accounts by individual/ entities of Pakistan and entities of Bangladesh require prior
approval of Reserve Bank of India.
€ Maintained in Savings, Current and Fixed deposits and denominated in Indian rupees.
€ NRI/PIO may transfer/remit from the balances held in NRO account an amount not exceeding USD
one million per financial year
€ The accounts may be held jointly with residents and / or with non-resident Indian.
€ The NRO account holder may opt for nomination facility.
€ NRO (current/savings) account can also be opened by a foreign national of non-Indian origin
visiting India which can be read under "Accounts opened by Foreign Nationals and Foreign
Tourists”.
Non-Resident (External) Rupee Account (NRE Account)
€ NRE account may be in the form of savings, current, recurring or fixed deposit accounts (with
maturity of minimum one year).
€ Such accounts can be opened only by the NRI.
€ Account will be maintained in Indian Rupees.
€ Balances held in the NRE account are freely Repatriable.
€ Repatriable -Refers to the ability of an asset to be moved from a foreign country back to an
investor's home country.
€ Interest income and balances held in NRE accounts are exempt from Income tax.
Foreign Currency Non Resident (Bank) Account – FCNR (B) Account
€ NRIs are eligible to open and maintain these accounts.
€ FCNR (B) accounts are only in the form of term deposits of 1 to 5 years.
€ Account can be held in any freely convertible currency.
€ Loans can be extended against security of funds held in FCNR (B) deposit either to the depositors
or third parties without any ceiling.
Date of Release - 07-Jan-16 SUBJECT: GA www.bankersguru.org
