Who is an Non – Resident Indian (NRI)?

A Non – Resident Indian (NRI) as per FEMA 1999 is an Indian citizen or foreign national of Indian origin resident
outside India for purpose of employment, carrying on business or vacation in circumstances as would indicate an
intention to stay outside India for an indefinite period. An individual will also be considered NRI if his stay in India
is less than 182 days during the preceding financial year.

A person of INDIAN ORIGIN (PIO) is a citizen of any country other than Pakistan, Bangladesh or Shri Lanka, who

• At any time held an Indian Passport,
• He or any of his parents or grand parents was a citizen of India,
• Is a spouse of an Indian Citizen.

To open an NRE account please complete the account opening form and mail it to the branch of
your choice along with:

• Copy of Passport
• Visa / resident permit
• 2 photographs
• initial money remittance

Your signature may be verified by anyone of the following;

• Indian Embassy/ consulate
• Any person known to the bank
• Notary public
• Any of Bank offices abroad

You can open

• NRE Savings Bank Accounts
• NRE Rupee Fixed Deposit Accounts
• FCNR (B) Deposit Accounts
• NRO Accounts (Rupee accounts for crediting income in India)

You can authorize a resident to operate your account through a power of Attorney or letter of Authority.

Nomination Facility available (Nominee can be a resident Indian also)

• You are free to maintain your assets acquired or inherited abroad.
• NRIs/PIOs on return to India can freely maintain and operate their foreign currency accounts
  with Banks abroad.
• Balances in NRI/FCNR accounts can be credited to RFC accounts in US Dollars.

TAX BENEFITS for NRIs

• Bank deposits are free of Income Tax.
• Interest on NRE & FCNR deposits is free of income tax.
• Interest income in NRO accounts is taxable.

· Drafts in Indian rupees can be purchased from exchange companies or our correspondents and
mailed to the branch where you have your account or want to open a NRI accounts.

Telegraphic or wire transfers can be made through SBI branches abroad or our correspondents to
branches having SWIFT/TT drawing arrangements. Please indicate your account number clearly.

Cheques can be deposited for credit of your accounts. These will be collected and credited to your accounts.

Travelers’ cheques can be tendered by you personally during your visit to India.

Particulars

Foreign Currency Non-Resident Account

( FCNR (B) A/c )

Non-Resident External Rupee Account

( NRE A/c )

Non-Resident Ordinary Account

( NRO A/c )

Who can open an account

NRIs
( individuals/ entities of Bangladesh/ Pakistan/ nationality/ ownership require approval of RBI

NRIs
( individuals/ entities of Bangladesh/ Pakistan/ nationality/ ownership require approval of RBI

Any person resident outside India ( individuals/ entities of Bangladesh/ Pakistan/ nationality/ ownership require approval of RBI

Joint account

In the name of two or more Non-Resident individuals

In the name of two or more Non-Resident individuals

May be held jointly with residents

Nomination

Permitted

Permitted

Permitted

Currency in which account denominated

USD, GBP, EURO, CAD &   AUD

Indian rupees

Indian rupees

Repatriability

Repatriable

Repatriable

Not repatriable except for the following in the account

1.current income and interest

2.Education ofchildren US$ 100000/- per year

3. Medical expenses abroad US$ 100000/- per year.

4.sale proceeds of immovable property for  US$ 1.00/- mn per year purchased from Rupee fund*

5. NRI may remit an amount up to US$ 1.0 mn per calendar year.

Foreign currency risk

Account holder is protected against changes in INR value vis-à-vis the currency in which the account is denominated.

Account holder is exposed to the fluctuations in the value of INR

Account holder is exposed to the fluctuations in the value of INR to the extent of interest amount.

Type of accounts

Fixed deposits only

Savings, Fixed deposits

Savings, Fixed deposits

Period of fixed deposits

For terms not less than 1 year and not exceeding 5 years#

For terms not less than 1 year and not exceeding 5 years

For the period as announced by the deposit taking bank.

LOANS AND OVERDRAFT

Particulars

Foreign Currency Non-Resident Account

( FCNR (B) A/c )

Non-Resident External Rupee Account

( NRE A/c )

Non-Resident Ordinary Account

( NRO A/c )

Rupee loans in India against security of the funds held in the account to :

Account holder

Third party

Permitted

Permitted

Permitted

Permitted

Permitted

Permitted

PURPOSE OF LOAN

Rupee Loans In India

To the A/c holder

To third party

1.personal purposes or for carrying on business activities*

2.Direct investment in India on Non-repatriation basis by way of contribution to the capital of Indian firms/ companies

3. Acquisition of flat/ house in India for his own residential use.

Fund based and/ or Non- fund based facilities for personal purposes or for carrying on business activities*

1.Personal purposes or for carrying on business activities*

2.Direct investment in India on Non-repatriation basis by way of contribution to the capital of Indian firms/ companies

3. Acquisition of flat/ house in India for his own residential use.

Fund based and/ or Non- fund based facilities for personal purposes or for carrying on business activities*

Personal requirement and/ or business purpose.*

Personal requirement and/ or business purpose.*

Particulars

Resident Foreign

Currency Account

( RFC Account )

Resident Foreign

Currency [Domestic] Account

(RFC [D] Account )

Exchange Earner’s Foreign

CurrencyAccount

( EEFC Account )

Who can open an account

Any NRI for a period not less than 1 year has become resident in India on or after 18.04.1992

Resident Individuals

Any person resident in India

Sources of funds

a) Foreign exchange received as pension/ superannuation/ other benefit from employer abroad.

b) Realization of assets held abroad.

c) Foreign exchange acquired as gift or inheritance from person who was NRI.

d) Balance in any NRI/ FCNR outstanding at the time of arrival in India.

Foreign Exchange acquired:

a) While on a visit abroad.

b) From any person on visit to India or gift or honorarium or for services or settlement of any lawful obligation.

c) By way of honorarium or gift while on a visit abroad.

d) Representing unspent Foreign Exchange acquired during travel abroad.

A 100% Export Oriented Unit in

a) Export Processing Zone

b) Software technology park

c) Electronic hardware technology park may credit up to 100 % and any other person resident may credit up to 50 % of their foreign exchange earning.

d) Professional like scientist, Professors of Indian Universities, Economists, lawyers, doctors, artists, architects, engineers, consultants, cost/ chartered accountants, directors of Boards of overseas companies etc. who render services in their individual capacities outside India, may credit up to 100 % of their earning.

Joint account of two or more residents

Not permitted

Not permitted

Not permitted

Joint account with NRI

Not permitted

Not permitted

Not permitted

Types of account

Savings, Current, Fixed Deposits

Current Account

Current Account

Period for fixed deposits

Like any resident accounts banks may fix the period

N.A.

N.A.

Rate of interest

The Banks are free to determine interest rates

No interest is payable

No interest is payable

End use

No restrictions, including investments overseas

For permissible current and capital account transactions

For bonafide purposes as per notification No. 10/2000-RB dated 03.05.2000

Loans and
Overdrafts in India and abroad

Not permitted

Not permitted

Not permitted